ONE44 Analytics where the analysis is concise and to the point
The Beans have now hit our long term target of 1410.00, this is 61.8% back to the all-time high. They also closed above it, so tomorrow's close will be even more important.
We have been saying since the fall of last year that we feel this can be a multi-year rally, however this is the type of level that can halt the rally for the time being and even cause a sharp setback.
For the upside, you will want to see another close above 1410.00 provided this does happen we would also want to see it close above the 1436.00 major Gann square and if so, the next target area will be 1578.00 to 1588.00, this is first, 78.6% back to the ATH and secondly a major Gann square. With another close above it, it will become our long term swing point.
For the downside, a break from a 61.8% retracement can send them back to 61.8% (1030.00) of where they just came from, per the 61.8% rule. We do not think this is currently going to happen, however a break to 38.2% would not be out of the norm. This is 1186.00 and is the level that would have to be taken out to do damage to the long term trend.. Any break from 1410.00 that could only get back to 23.6% of the current rally at 1279.00 would keep the market extremely positive.