August hogs closed lower on Monday as it extended the decline off July's high.

Today's low-range close sets the stage for a steady to lower opening when Tuesday's night session begins trading.

Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term.

If August extends the decline off June's high, the 38 per cent retracement level of the 2013-2014-rally crossing at 115.40 is the next downside target.

Closes above the 20-day moving average crossing at 125.25 would confirm that a short-term low has been posted.

First resistance is the 10-day moving average crossing at 121.63.

Second resistance is the 20-day moving average crossing at 125.25. First support is today's low crossing at 117.05.

Second support is the 38 per cent retracement level of the 2013-2014-rally crossing at 115.40.