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This is a quick update to our 1/18/21 post below.
The Corn has now closed back below the long term swing point of 510.00 and as long as they continue to do so the target is 450.00. This is 38.2% of the move up and the level needed to hold to keep our belief that this is going to be a multi year rally intact, as stated back in the fall of 2020. For the upside, it will need a close back above 510.00 and more importantly above the 520.00 major Gann square to bring back the upside target of 640.00. All of the major Gann squares listed in the previous post are still valid.The charts below have been updated as well.
Corn has now had a few closes above our long term swing point of 510.00, provided they continue to do so, the next long term target is 640.00. There are a few major Gann squares to look for resistance before then at 555.75, 588.75 and 620.25.We also have to watch the 510.00 long term swing point if they close back below it, being 38.2% back to the all-time high a reaction from here could be a good size correction. The 38.2% rule would tell us to look for a retest of the lows, however this is not what we feel is going to happen at this point. We still think this is going to be a multi year rally, as we stated back in the fall of 2020, so it should hold 38.2% to keep that view alive, this level is 450.00 and it is a major Gann square. Any setback below 510.00 that can not get below 23.6% of the move at 485.00, which is also a major Gann square, keeps the market extremely positive.
We highly recommend that you use the secondary Gann squares on the hourly chart below for short term support/resistance, swing points and targets. These yellow horizontal lines are based on W.D. Gann's " Law of Vibration"
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