Wednesday, November 15, 2006

Lean Hogs - Resistance becomes Support?

Lean Hogs have sold off quite viciously from the highs of this month - a classic headfake out of consolidation and selloff, described as a train wreck by Jim Wyckoff.

I wouldn't go that far(yet) as this Feb Hogs chart looks far from bearish in my opinion. If Hogs get support here, it will be at a previous resistance level and at ~50% fib retracement. If this is just a retracement, then it is right here where we want to see support... or 63.77 at the lowest.

It's a tad early to call a long opportunity, but just a heads up. IV's are on the cheapish side so optioneers might be looking on the buy side of the equation.

No comments: