2 min read

Soybeans and 61.8%

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.

For the ONE44 Fibonacci rules and guidelines to help with this article, go here.

Charts are courtesy of Barchart.com


(ZSH22) (ZSK22) (ZSN22)

In our last post on 1/9/22 we left you with this,

"The rally from 23.6% took it right through 1390.00. You can use 1390.00 as a swing point now. Above it, look for new contract highs and the major Gann square at 1456.00. Our long term target is still 1765.00. Right back below 1390.00 should send it to the short term swing point of 1331.00, this is 38.2% of the current rally."

The setback from the 1390.00 (78.6%) could only go 23.6% of the current leg up that stated at the long term swing point, this was 1361.00 on 1/18/22, it was also a major Gann square. Once back above 1390.00 the rally took it to the next major Gann square at 1456.00 and here is where you have to watch, both the March chart and the Nearby chart. With March being the nearby contract now, the March chart is off to new contract highs and only major Gann squares to look for resistance, however on the Nearby chart, 61.8% back to the ATH is at 1485.00. Provided it sets back from this area and because it is 61.8% we would be looking for a 61.8% break the other way, so the long term target would be 1300.00.

As always we will watch all the retracements on any setback to see just how weak, or strong the market is regardless of the long term target. Key levels with today's high are 23.6% at 1411.00 and 38.2% back at 1370.00.

On a failure to turn lower from the 1485.00 area look for the next major Gann square at 1560.00. Our long term target remains at 1765.00.

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If you are looking for option plays to go with the ONE44 levels, we highly recommend going to the Barchart webinar library where John Rowland has plenty of information on Option strategies.

Here is one, Using the Long Strangle Options Strategy for Opportunity Trades

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