Coming top in Cattle?
From last week,
Use 154.50 as the swing point for the week.
Above it, with 154.50 being 23.6% of the contract high and low, the long term target is new highs for the year, or a good run at the area of 78.6% at 160.20 and the 160.59 major Gann square. The short term target is 38.2% of the current break at 157.22, any rally that fails to get above here is a negative sign and new lows can follow.
The big rally from the 23.6% retracement at 154.50 has now taken it to the target area of 160.20 and 160.59.
With 160.20 being a 78.6% retracement, the target on a setback from here is 78.6% the other way at 155.75 based on the ONE44 78.6% rule. It can still trade up to the 160.59 major Gann square, but as long as it closes below 160.20 you can look for that target. As always we watch all the retracements on every move regardless of the longer term target and any setback that holds 38.2% of the move at 158.04 keeps the current trend positive and new highs can follow, this level is also a major Gann square.
On a failure to turn lower from 160.20 and a close above the 160.59 major Gann square look for new contract highs and then the 164.17 major Gann square.
- If you like this type of analysis and trade the Grain's take a look at our “Weekly Grain update” Premium Membership on our website.
You can also follow us on YouTube for more examples of how to use the Fibonacci retracements with the ONE44 rules and guidelines.
FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.