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.
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
EUR/USD consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price is defending support at $1.80 as multiple technical indicators flash bearish. 21.67 million MANTA tokens worth $44 million are due to flood markets in a cliff unlock on Thursday.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.