Soybeans Update

ONE44 Analytics where the analysis is concise and to the point

SOYBEANS
The Beans failed to close above the 1436.00 major Gann square and the break below our 1410.00 long term target has come off $1 so far. As mentioned in the 1/18/21 update below, 1410.00 is 61.8% back to the all-time high and a break from here could take it to 61.8% (1030.00) of the current rally. We always watch all the retracements on any movement regardless of the target and a more realistic target is 38.2% of the move up at 1190.00, this is also the long term swing point. You will also have to watch 23.6% of the rally at 1285.00, if this is all they can break off of such an important level above the market remains extremely positive. This is also a major Gann square. Once they can get a solid close above the 1436.00 major Gann square the target becomes 1588.00.

1/18/21

The beans have hit our long term target of 1410.00, this is 61.8% back to the all-time high, however they still have not been able to get a solid close above the 1436.00 major Gann square. This will be needed to give us the next upside target of 1588.00, this is 78.6% back to the ATH and a major Gann square. There is one other major Gann square before this to look for resistance at 1512.00. As important as 1410.00 is being 61.8% back to the ATH a setback based on the "61.8% rule" could send them to 61.8% of the move up (1030.00). We currently do not feel this is going to happen and still believe this is going to be a multi year rally, so a likely target on a break from this area is 38.2% of the move at 1190.00, this is the long term swing point. Any break from this area that can only get back to 23.6% of the move at 1285.00 keeps the trend extremely positive.

We highly recommend you use the secondary Gann squares on the chart below for short term support/resistance as well as swing points and targets. These levels are based on W.D.Gann's 'Law of Vibration"

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These are our latest videos on how to use the Fibonacci retracements. Even if you do not trade the market covered, the rules and guidelines are the same, as we believe the Fibonacci retracements are the underlying structure of all markets.