In this chart we will show you some of the ways we follow the Grains for our Premium Members.
First we have the Gann "Law of Vibration" levels that are unique to each contract and offer where the market can find natural support and resistance levels. These are the yellow horizontal lines.
Mr Gann viewed stocks as live electrons, atoms, and molecules which hold persistently to their own individuality in response to the fundamental Law of Vibration. Science teaches 'that an original impulse of any kind finally resolves itself into periodic or rhythmical motion, also just as the pendulum returns again in its swing, just as the moon returns in its orbit, just as the advancing year ever brings the rise or spring, so do the properties of the elements periodically recur as the weight of the atoms rises'.
Each level can be used as support and then resistance once taken out and the reverse when starting as resistance. These levels will be good until the end of each contract
Second are the Fibonacci retracements that we use with the ONE44 rules and guidelines. When using the October daily continuation chart you can see the low on 3/4/22 held 23.6% back to the 10/1/21 low, this was also a major Gann square. We will be looking for new highs when holding this level, however before then it hit 78.6% on 3/30/22 that led to another 78.6% retracement on 4/6/22. (more about this is covered in our rules and guidelines section). It did make the new high on 4/22/22, however only a slightly higher high and that sent it to 38.2% on 5/23/22 per the 23.6% rule. The low on 5/31/22 had one close below 38.2% (we always want to see two to confirm the violation of a level) and held the 135.75 Major Gann square before closing back above 38.2%. The rally from there took it to 61.8% on 6/9/22 and as the 61.8% rule says "look for 61.8% the other way". This happened on 6/13/22 and they are now back at the first 61.8% at 143.00.
The long term target after holding 38.2% on 5/31/22 tells us to look for new highs for the year, however you will still have to watch the 78.6% level for resistance at 145.00, a turn lower from here can send it right back to 38.2% at 137.25.
As a bonus add-on we are now putting Gann "Law of Vibration" charts for Cattle and Hogs in our Grains Weekly updates below are a couple of them.
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