Near Term (Basis April): Bullish, still cautious
Friday's lean hog trade was more of a two-sided affair with the April contract trading both sides of unchanged instead of just a rocket higher. Lean hog futures in general were mixed with deferred contracts lower on the day. Other than today's new contract high and the psychological 120.00 cent level, there is no technical resistance to worry about and right now no reversal pattern that suggests the market has stopped making new highs in the front end.
Long Term: Bullish
Our long-term technical outlook is bullish. Major resistance is at 120.00 cents, while support is 107.47 and then 102.50 cents.