April lean hog futures on the Chicago Mercantile Exchange on Thursday gapped lower on the daily bar chart and hit a fresh contract low of 59.85 cents a pound. Prices remain in a strong 6.5-month-old downtrend on the daily bar chart and there are no early technical clues to suggest a market low is close at hand. The next downside price objective for the powerful hog market bears is to push and close prices below strong longer-term technical support at the 58.00-cent area. For the bulls to begin to regain some upside near-term technical traction, they will first have to push and close prices above strong technical resistance at the last “reaction high” of 63.15 cents a pound.
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Near-term chart resistance is seen at the top of Thursday’s downside price gap on the daily chart, at 60.60-cents. Above that lies chart resistance at 61.00 cents, at Wednesday’s high of 61.60 cents and then at 62.00 cents. Near-term chart support for April lean hog futures is located at the contract low of 59.85 cents, at 59.50 cents and then at 59.00 cents.–Stay tuned! Jim Wyckoff
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