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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 and Gann squares.
You can get all the rules and guidelines to the Fibonacci retracements on our website
Everything in our last post remains the same. They continue to close below the 555.75 major Gann square and as long as they do the target is 470.00.
Every week's range for the last seven has traded at the 555.75 major Gann square and gone nowhere up to this point. Our target on a break from this area is the long term swing point of 470.00, this is 38.2% back to the 4/29/20 low. Before then look for the area of 520.00 and 510.00 this is first a major Gann square and then 23.6% back to the 4/29/20 low. There is one other major Gann square to look for support at 484.25.
Provided they can close and stay above the 555.75 major Gann square, the long term target is 640.00, this is 61.8% back to the all-time high. Before then look for resistance at the two other major Gann squares at 588.75 and 620.25.
The Beans did go back up and test the 1436.00 major Gann square again and the first downside target is, the area of 1300.00 to 1292.00. All the other levels below remain the same.
The Beans have also been up against a major Gann square at 1436.00, the first break from this level took it to just above 23.6% of the move and a major Gann square at 1292.00. The second rally up to it had one minor close above it and then closed right back below it and with today's close, it is below 1410.00, this is 61.8% back to the all-time high. Our target on a break from this area is our long term swing point of 1200.00, this is 38.2% of the move up so far. Two other areas to watch for support on a break is the 1360.00 major Gann square and then the area of 1300.00, 23.6% of the move and 1292.00 a major Gann square.
With a solid close above the 1436.00 major Gann square look for the long term target of 1588.50, this is a major Gann square and 78.6% back to the all-time high.
They have now closed below 626.00, this was 23.6% of the rally. As long as they remain below it, look for the long term swing point of 565.00
Our long term target remains 731.00, this is 38.2% back to the all-time high. The long term swing point to keep our idea that this is going to be a multi year rally alive, is 565.00.
The trade around the 648.00 major Gann square has been very choppy. The rallies above it have failed to make new highs and the trade below it has held 626.00, this is 23.6% back to the 2019 low. The fact that it continues to hold this keeps the market extremely strong. You can use this as the short term swing point. They can trade below it, but would have to close back above it to remain extremely positive. Provided this did happen, once they get back above the 648.00 major Gann square they should go for new highs and then the long term target of 731.00.
With a solid close below 626.00 look for 585.00, this is 38.2% back to the 2019 low. It would also put back at the 584.00 major Gann square and on top of the 2018 and 2020 highs, that were 23.6% back to the ATH and 38.2% back to the 2012 high.
It would have to take out 565.00, our long term swing point to put the idea of a multi year rally that we have been mentioning since last fall on hold.
The hourly Charts below are natural support and resistance levels that are based on W.D.Gann's "Law of Vibration". 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.
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This is our latest video in an ongoing series of how to use the Fibonacci retracements. Even if you do not trade the market covered the rules and guidelines are the same, as we believe the Fibonacci retracements are the underlying structure of all markets.