Jim Wyckoff: Govt Shutdown Leaves Hog Futures Traders Uneasy10 October 2013
US - December lean hogs closed down $1.67 at $86.52 Wednesday. Prices closed near the session low and scored a big and bearish "outside day" down on the daily bar chart.
The key "outside markets" were in a fully bearish posture for the hog market Wednesday, as the US dollar index was sharply higher and crude oil prices were sharply lower.
The bulls still have the near-term technical advantage, but did fade today.
The lack of cash hog and pork product news due to the USDA shutdown has futures traders uneasy and that does favor the bearish camp.
The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at the contract high of $88.90.
The next downside price breakout objective for the bears is pushing prices below solid technical support at last week's low of $85.85.
First resistance is seen at $87.00 and then at $87.50. First support is seen at today's low of $86.45 and then at $86.00. Wyckoff's Market Rating: 6.5ThePigSite News Desk
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