Lean hogs futures price rose more than 27% last month.
It made the bottom in October at 40.75 and since then keeps growing. Now it became pretty clear that we have the 12345 motive structure almost finished. Need to finish the wave 4 and then the last 5th wave in this structure will perform by making one more high. Look at the chart.
Bigger correction ahead, buy after the correction
As always, no uptrend can go without corrections. Once the 5th wave finishes, we gonna see a bigger correction for the next 2-3 months. That correction should look like a short-term downtrend or just a sideways moving. Anyway, be patient and wait for a good time to buy lean hogs . The best time to buy gonna be March or April 2017: at $62 level for agressive strategies or after $72 fibonacci level breaking for conservative strategies. The possible trade target is $90.
Longer-term: New lean hogs paradigm?
The big picture is still unclear, and it depends on how exactly this instrument will behave next year. There are 2 possible varinats:
* The new long term motive wave is forming. In this case the price gonna only rise in the following years, the upside target is really high;
* This is a big wave, and in this case we gonna see the overall trend target no higher than $120-130 in a year or two.