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.
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Charts are courtesy of Barchart.com
In Long term view Soybeans are holding the long term swing point of 1235.00, it did trade below it and as we previously mentioned this is acceptable as long as it does not have two closes below it. This is 38.2% of the contract high and the 2020 low. The target on a rally from here should send it to new highs for the year. We get this target by following the ONE44 Fibonacci 38.2% rule and as always we watch all the retracements on any move to see just how strong, or weak the market is regardless of the long term target. Failing to hold 1235.00 and closing below the 1222.00 Major Gann square should send it down to 61.8% on the Nearby chart at 1141.00 and then to 61.8% on the November contract at 1070.00. The next major Gann square below 1222.00 is 1156.00 and then 1091.50.
In the Short term view, the trend is still down, this started on 7/1/21 at the 78.6% retracement and as you can see on the chart, each rally has hit a retracement to keep it negative. This will be the case until it can take out 38.2% of the current down move at 1327.50. Once they have done this look for 78.6% at 1429.00, beyond this we look to the long term levels. Any rally from the 1235.00 area that does not get above 23.6% at 1290.00 keeps the short term trend very negative.
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