Rising China pork imports bullish for LHOG
|Higher China pork imports are bullish for pork market. Will the LHOG continue gaining?
China's pork imports in September surged 76% from a year earlier after deadly African swine fever reduced the world's top pig herd by almost 40%, according to official data. Pork imports for the first nine months of the year were 1.33 million tonnes, up 43.6% from the same period a year earlier, according to the General Administration of Customs. China is the top pork consumer in the world with about 55 million tons of pork consumption last year. At the same time China has indicated readiness to increase purchases of American agricultural products by $40 to $50 billion annually, which will also include pork. Lower pig supply and higher import demand is bullish for LHOG
On the daily timeframe the LHOG: D1 is retracing up toward the 200-day moving average MA(200).
- The Parabolic indicator gives a buy signal.
- The Donchian channel indicates no trend yet: it is flat.
- The MACD indicator gives a bullish signal: it is above the signal line and the gap is widening.
- The RSI oscillator is falling but has not reached the oversold zone.
We believe the bullish momentum will continue after the price breaches above the upper of boundary Donchian channel at 72.61. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower Donchian boundary at 62.97. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (62.97) without reaching the order (72.61), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Technical Analysis Summary
Order Buy Buy
stop Above 72.61
Stop loss Below 62.97
Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.