MURICO.com Forum

Aug hogs closed the week hugging-----

the 100 day moving av. That is a supportive sign that it will/should hold onto the 77.00 buy signal for support if there's an effort to retest that area which is not uncommon. My focus has shifted to the Oct contract but whatever Aug does, so will Oct for the next 2 weeks. Because the bears would be stricken with more anxiety attacks.

I like what I see for Oct hogs if Aug wants to go after the 82.00 target. Oct hogs trigger a buy signal with a daily close above 66.52 but not confirmed until a weekly close above 67.25 happens. This would give Oct a $5 extention rally to match the $10 rally in place for Aug. What if Aug catch's a sudden demand surge as it has been known to do-------can you say 84.00 Aug hogs. This could/should also stimulate extra Oct upside. It's not written in stone that Aug has to hold a $14 premium over Oct. A $10 premium is more than sufficient. My point is----Aug could stay in the 80-81 area and Oct could jump to the downtrend line resistance at 70-71.

Once again the Oct chart has the same friendly setup the Aug chart had when it took over as front month. Maybe it does get hammered back down to 60 or 62 when or before Aug expires but I'll bet it has the same upward response as Aug and then proceed to go after the $10 rally. I've been telling my hedgers to forget about Aug hedges and be patient for the 70-72 area for Oct hedges. So far I'm half right.

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Aug hogs closed the week hugging-----
You are absolutely correct, ITZ, that, - - -