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.

Here is a quick set of guidelines for the Fibonacci retracements to help with this article. You can find all the rules/guidelines and examples on any deviations from these four basic rules on our website.

1) The Golden rule, any market that is going to continue the current trend must hold 38.2% and a new high/low should follow.

2) Markets that are extremely strong/weak will only go 23.6% and a new high/low should follow. Typically a runaway market.

3) The 61.8% rule is, any market that holds 61.8% should go 61.8% of where it just came from. Usual happens when a market is directionless, or in a consolidation period.

4) The 78.6% rule is, any market that holds 78.6% should go 78.6% of where it just came from. This is also where a lot of Bull markets end and start.

Charts are courtesy of Barchart.com

This is an update to the article published on 9/13/21 called Grains, the levels they need to hold

Corn, Wheat and Soybeans all held the key levels we mentioned in that article and are now coming up to the first test of its strength.

Corn

(ZCZ21)

After trading below the long term swing point of 518.00 and then holding the 200 day moving average at 504.00 on a closing basis, it is now back above the long term swing point.

By holding this area the long term target is new highs for the year, however as we always say we have to watch all the retracements on every move to see just how strong, or weak the market is. It is currently at 38.2% of the move down, this is 534.50 and it is the short term swing point.

Provided this is all it can rally after getting back above the long term swing point, it would be a negative sign and a retest of the low should follow at a minimum. With a solid close above 534.50 the next short term target will be 78.6% at 574.00.

Wheat

(ZWZ21)

Wheat held 61.8% at 681.00 and being 61.8% we should be looking for 61.8% the other way based on the ONE44 Fibonacci rules and guidelines, this is 745.00. Watching all the retracements, it still has to get above 38.2% at 719.00 to say the short term down trend that started on 8/13/21 is over. Provided 719.00 is all they can get to on this rally look for a retest of the recent low.

Soybeans

(ZSX21) (ZSF22)

As you can see on the chart, Soybeans are well above their long term swing point of 1235.00, however they have been in a short term downtrend since 8/16/21. It will take a close above 38.2% of the move at 1307.00 to turn the short term positive, if so, look for 78.6% at 1355.00. Failing to get above 1307.00 can send it to retest the recent low and even the long term swing point of 1235.00.

You can find all our long term upside targets in our previous article on Barchart and the ONE44 website.

We are looking for your input, if there is a stock, or futures market you would like to see us do Fibonacci analysis on, email the ticker symbol to [email protected]
We will update these on the ONE44 website along with posting them on Barchart.com.

Sign up for our Free newsletter here.

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.