Soybeans hit the 1765 target to the TICK
Soybeans
As far back as our post on 7/28/21 "Grains continue to hold 38.2%" we said:
As long as it remains above it and continues to close above the long term swing point, look for new highs and then the long term target of 1765.00.
And as far back as the fall of 2020 we were calling for a multi-year rally.
The overnight high hit the long term target of 1765.00 to the tick and in a single day has come off over $1.00. So, is this the end of the multi-year rally?
The Fibonacci retracements are the best at telling us, if it is, or not when you follow the ONE44 rules and guidelines.
We know that any market that can only setback 23.6% remains extremely strong and is usually a runaway market. The first place to watch for support is 1628.00, it is 23.6% back to the 11/9/21 low. This low was the last time they hit the long term swing point that started this run up. The second and more important one is 38.2% of the same move and this is 1545.00. This is the level they should hold in order to keep the trend in this leg up positive. This also happens to 23.6% back to the contract low, making it even more important.
The long term swing point is now up to 1400.00, this is the level that would have to be taken out to say the multi-year rally is over.
It will take a solid close above 1765.00 to give us a new upside target of 2003.00.
You also use our Gann "Law of Vibration chart" for short term support and resistance here.
We will be going into the May contracts in the next few days.
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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
