The ever evolving landscape of agricultural commodities, a new trade idea incoming from the price action, commercial buying, seasonality and recent developments in the Chinese hog market.
βTo anticipate the market is to gamble. To be patient and act only when the market gives the signal is to speculate.β Jesse Livermore
Here's an in-depth exploration of the potential opportunities:
The Action: A false breakdown signal for my commodity trading system is when the price breaks a 100 day low and then reclaims the breakdown level. Most of the futures contracts already regained these levels and are currently in buy signals. This is the continuous contract.
Commercial buying: Is extremely high.
Capitulation Selloff and Bullish Reversal: Chinese hog prices recently witnessed a capitulation selloff, accompanied by a high volume, followed by an immediate bullish reversal. This suggests a potential end to herd liquidation.
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