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.

SOYBEANS

Now that the July contract as well as the May contract are trading above 1588.00, this is the swing point now. This level was 78.6% back to the ATH and a major Gann square and the only break they had from this area was down to 23.6% (1529.00) back to the 1/26/21 low. That low was also 23.6% back to the 2019 low, showing you just how dynamic this move has been.

Using the ONE44 Fibonacci rules and guidelines we know that for any trend to continue it must hold 38.2% of the move and extremely strong markets will only get back to 23.6%.

For the upside,

As long as it continues to close above 1588.00, the next long term target is 1970.00. You can also use the major Gann squares above as levels of resistance, these are 1666.75, 1746.50, 1830.25 and 1915.50.

For the downside,

On a solid close below 1588.00 look for 1436.00, this is 23.6% back to the 2019 low and a major Gann square. With an extended setback look for the long term swing point at 1304.00, this is 38.2% back to the 2019 low and just below it is a major Gann square at 1295.00.

A little about W.D. Gann's Law of Vibration,

Mr Gann viewed stocks as live electrons, atoms, and molecules which hold persistently to their own individuality in response to the fundamental Law of Vibration. Science teaches 'that an original impulse of any kind finally resolves itself into periodic or rhythmical motion, also just as the pendulum returns again in its swing, just as the moon returns in its orbit, just as the advancing year ever brings the rise or spring, so do the properties of the elements periodically recur as the weight of the atoms rises'.

On the chart you will find these levels marked with a yellow horizontal line.

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.

You can see the importance of these levels and the way they reacted to them, especially at the beginning of the year to mid April, so keep an eye on these going forward.

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

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