Grains continue to hold 38.2%

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 and Gann squares.

You can get all the rules and guidelines to the Fibonacci retracements on our website.

Grains

The Golden rule of the ONE44 Fibonacci rules and guidelines is, " Any market that is going to continue the current trend must hold 38.2%. It is quite amazing how well this rule works in general, but it has been what is holding the Soybeans, Corn and Wheat in a bull market. As we first mentioned in the Fall of 2020 we think this will be a multi year bull run and that 38.2% will let us know if this is going to continue.

Soybeans

ZSX21

In the Soybeans the June break took it to just above 38.2% of the 2018 low, this is 1225.00 and or long term swing point. The low for the move was 1240.50, keeping the long term trend positive. On the Nearby chart 38.2% was 1336.00 and the low there was 1323.50. The 200 day moving average is now at 1222.50 making it an even more important area to hold. As long as it remains above as it continues to close above the long term swing point, look for new highs and then the long term target of 1765.00. There are also two other major Gann squares to look for resistance at 1511.00 and 1667.00. With a solid close below 1225.00 the next target is 1065.00, this is 61.8% of the high and the 2018 low.

Corn

ZCZ21

Using the December Daily Continuation chart, the break from the May high has been sitting right on the 38.2% retracement (516.00) and this is our long term swing point. As long as it continues to close above it, look for new highs and then the long term target of 810.00. With a solid close below 516.00 look for 440.00, this is 61.8% back to the 2020 low. The 200 day average is 485.00.

Wheat

ZWZ21

Using the December Daily Continuation chart, The May break took it right into 38.2% (620.00) back to the 2016 low, this is the long term swing point. Here too we will be looking for new highs and then the long term target of 960.00. On a failure to hold the long term swing point the target is 520.00, this is 61.8% back to the 2016 low. The 200 day average is at 648.00.