The current down trend could be ending and here's why.
The chart below is KEY to this analysis.
Each of the rally attempts on the move down were stopped by either a 38.2%, or 23.6% Fibonacci retracement, on 9/29/23, 10/30/23, 11/27/23 and 12/5/23.
The last one took it to a slightly lower low, when following the ONE44 Fibonacci rules we know there are two types of bottoms that can cause a quick rally, one is a failure to make a new low at a 78.6% level and the second is only making a slightly lower low after coming off of a 23.6%, or 38.2% retracement.
The low on 12/11/23 made the slightly lower low and held the 340.25 major Gann square and the 61.8% level from the long term chart at 336.50. The move higher from there has rallied 35 cents so far.
The short term target is the area of 38.2% back to the contract high at 414.00 and the 420.50 major Gann square. The long term target is based on the ONE44 61.8% rule and that is any market that holds a 61.8% retracement can send it 61.8% the other way and this is 460.00, there is also a major Gann square at 458.00 for added resistance.
Taking out 61.8% below at 336.50 can send it to 78.6% of the same move at 293.75, also a major Gann square.
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