October lean hog futures on the Chicago Mercantile Exchange are in a three-week-old uptrend from the July low of $68.40. Prices this week hit a fresh four-week high of $74.25, which is now solid overhead technical resistance. The lean hog bulls do presently enjoy having the near-term technical advantage.
A close above this week’s high of $74.25 in October lean hogs would provide the bulls with fresh upside technical momentum and would also suggest a challenge of the contract high of $77.40, scored on June 23.
Technical support for October hogs is located at $72.00, at this week’s low of $71.55 and then at $71.00. A close below strong technical support at $70.00 would deflate the bulls to suggest that a market top is in place and that prices would then trend sideways to lower.
