Pro Farmer Senior Market Analyst Rich Posson says lean hog futures corrected higher as anticipated. "A Level 2 cycle low was placed two weeks ago and soon after the oversold five-week stochastic made a buy signal," he says. "The indicator has left the oversold region with widening spread suggesting potential for lingering bullish momentum."
Posson says the corrective rally in lean hog futures may last until late this month.
On the August lean hog chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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