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DCE January Soy Meal Upside Target

DCE January Soy Meal Upside Target
Photo by Daniela Paola Alchapar / Unsplash

ONE44 Analytics where the analysis is concise and to the point

Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.

Charts are courtesy of Barchart.com

DCE Soy Meal


The low on 7/6/22 held the long term swing point of 3,480, this was 38.2% of the contract high on 3/23/22 and the 2020 low. Following the ONE44 38.2% rule,

"Golden Rule". This rule being, " any market that is going to keep its current trend must hold 38.2%". As long as it does the trend will continue and it should make new highs/lows from that retracement.

As long as this level holds, the long term target is new highs for the year.

The first rally from there went  38.2% back to the contract high on 7/11/22, this also lined up with the 3,691 major Gann square and it tested the low again on 7/22/22. Whenever a market fails to make a new low after hitting 38.2% above, we then look for 61.8% of that same move on the next move higher and this is 3,860. This was achieved on 8/23/22, however before then it held two other retracements below before getting there. The first was 61.8% on 8/4/22 and the second was 38.2% on 8/16/22. As you can see on the rally from the long term swing point the setbacks have been getting smaller and holding tighter retracements.

It currently is holding just above 38.2% again, this time at 3,720. Above this level we are looking for the area of the 3,930 major Gann square and 78.6% back to the contract high at 3,960. On a failure to hold 3,720 the target below is 78.6% of the rally at 3,530.

If you like this kind of analysis and trade the U.S. Grains, give us a look Grains Weekly update.

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