April lean hog (HEJ26) futures present a selling opportunity on more price weakness.

See on the daily bar chart for April lean hog futures that prices are trending lower and this week hit a four-week low amid the recent steep downdraft. The late-week pause has produced a bear flag pattern on the daily chart. Bears have the near-term technical advantage.

Fundamentally, Chinese purchases of U.S pork have declined in recent months due to a glut of pork in China. Seasonally, U.S. hog slaughter levels will begin to rise as springtime nears.

A move in April lean hog futures below chart support at $92.00 would become a selling opportunity. The downside price objective would be $84.00, or below. Technical resistance, for which to place a protective buy stop just above, is located at $95.00.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

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