April lean hog futures at the Chicago Mercantile Exchange this week touched a fresh seven-week high of 68.50 cents a pound. Prices are in a three-week-old uptrend from the January low of 62.52 cents, and just recently did penetrate on the upside and negate a downtrend line drawn off the November 2006 highs.
The bulls do have fresh upside technical momentum on their side, but need to push April futures prices above solid technical resistance at this week’s high of 68.50 cents to gain better upside technical momentum to then suggest a challenge of the contract high of 70.15 cents, scored in November.
The lean hog futures bears would regain some fresh downside technical momentum by pushing April futures below solid chart support at 65.75 cents.
The Moving Average Convergence Divergence (MACD) indicator overlaid on the daily chart for April lean hogs is presently in a bullish posture. The MACD line is above the “trigger” line of the indicator, and both lines have just recently moved above the horizontal “zero” line and are now into bullish territory.
(Jim Wyckoff is a technical analyst and the proprietor of the analytical and educational advisory service, “Jim Wyckoff on the Markets.” He does not trade commodity futures. His email address is email@example.com, Tel: 1-319-277-8643)