Farmers hope for the cancellation of duties
US Treasury Secretary Steven Mnuchin said that he was pleased with the progress of the US-China trade negotiations. Will LHOG prices rise?
In April and July 2018, China sharply raised its duties on American pork in response to the increase in duties in the US on Chinese aluminum and other metals. Because of this, the volume of pork exports from the US to China decreased by 55% last year compared with 2017. Theoretically, the normalization of trade relations between the two countries and the cancellation of duties may increase the demand for American pork. An additional factor for the possible growth of quotations may be the registration of new cases of swine fever in Europe and Asia. Amid this, pork exports from Brazil in the first 6 days of February increased by 50% compared with the average daily volume of January and reached 2.8 thousand tons per day.
On the daily timeframe, LHOG: D1 is in the support line of the uptrend. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of the cancellation of duties on American pork in China.
-
The Parabolic indicator gives a bullish signal.
-
The Bollinger bands have widened, which indicates high volatility. Both Bollinger bands are titled down.
-
The RSI indicator is below 50. It has formed a positive divergence.
-
The MACD indicator gives a bullish signal.
The bullish momentum may develop in case LHOG exceeds its two last fractal hisgs at 62.5. This level may serve as an entry point. The initial stop loss may be placed below the last fractal low and the Parabolic signal at 57.5. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level (57.5) without reaching the order (62.5), we recommend to close the position: the market sustains internal changes that were not taken into account.
Summary of technical analysis
|
Position |
Buy |
|
Buy stop |
Above 62.5 |
|
Stop loss |
Below 57.5 |
Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.