2020.11.23 Hog Futures Update
2020.11.23 Klarenbach Hog Report Market Update
This is a copy of today’s Klarenbach Hog Report.
The purpose of this newsletter is to demonstrate futures trading strategies that provide protection from a downward movement in price.
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LEAN HOG FUTURES
HEG1 FEB 2021
As we discussed in the weekend report, I am watching to see how the price reacts to the 50 Day Moving Average (DMA) and the green rectangle area of interest.
The chart below shows how today’s price moved up past the green 50 DMA and found resistance at the swing high/low 0.618 Fibonnaci level.
I also added the VWAP (Volume-Weighted Average price from the September 12 gap.
Note the confluence of the SEPT 12 VWAP and the 50 DMA. I expect that this will act as resistance.
I decided to enter another SHORT FEB 2020 contract at 67.450 with a tight stop at 68.850.
If I am wrong, at least the loss will be small.
My entry was sloppy as I was hesitant to enter at the .618 fib level.
There is still an entry opportunity if the price gets back to that level.
I will monitor this trade and if the price moves lower, then I will move my stop lower to avoid a loss.
I do not have a target per se, but I will be very interested in how the price reacts at the 200 DMA and my red area of interest.
As mentioned in previous editions, I am tracking the results in a CME Practice account.
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