Live Hogs 3-20-23

Live hogs collapsed recently with many contract months making new contract lows. The continuous charts however are suggesting at that there might be something big brewing - all time new highs. After finding the Covid low, price rallied substantially trading above the ML. Price pulled back found a low and again challenged the previous high testing the sliding parallel (SP), turned and return to test the lower SP - respecting it as well. Price then has traveled horizontally storing energy for many months - breaking through the downsloping UML without reaching the ML - triggering the hagopian rule - then testing the MSLML - then gapping higher last week. While the current sentiment in the hog complex is very negative, we would suggest that the upside potential for hogs is huge - if price can confirm a pivot in the coming days. We would highly suggest that people monitor price’s movements in the coming days and be willing to adjust their risk profile if necessary.