Chart Book | Chart of the day: Pork prices probe highs

Rather more slowly than we had originally thought, because Chicago Mercantile Exchange lean hog futures prices sagged a little between February and April this year, our target of 87.25 US cents per pound was hit last week. Becoming overbought in the process, the move means that we have matched and closed above the highs in 2015 and 2016, retracing half of the drop since 2014’s record high at 133.80. This is now an obvious time to take stock. Because volume is good and open interest is rising sharply, because momentum is strongly bullish and historical volatility high, we feel there is a good chance of yet another surge to the psychological 100.00-110.00 US cents per pound.

Nicole Elliott is a technical analyst