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.
In the update on 9/22/22 we told you what key level was held down at 7.80 and what to look for from it.
This was from that update,
With the new low, the 61.8% target above, from 61.8% below, is now 10.75 and as we mentioned in the previous update, you have to watch all the retracements regardless of the longer term target. The rally from there was stopped temporarily by the 8.62 major Gann square for a week before going on to 23.6% (8.85) back to the 3/4/22 high, it traded at this level for 6 of 7 days before setting back to 38.2% on 9/19/22 at 8.40.
We know the long term target is 10.75 based on the ONE44 61.8% rule, however we will next watch 38.2% at 9.55. A trade up to this level that then closes below the 9.43 major Gann square can cause a quick setback. Once above 9.55, look for the 10.30 major Gann square and then the long term target of 61.8%. To keep the current leg up positive, it should hold 38.2% at 8.62, this is also a major Gann square, so a key area to hold.
On Monday it came right into the key support that it needed to hold to keep this up move positive, this was the 862.00 major Gann square which was also 38.2% of the move. Monday's low 8.61
Following the ONE44 38.2% rule, we will be looking for new highs and then 38.2% back to the 3/4/22 high at 9.55. Once above 9.55, look for the 10.30 major Gann square and then the long term target of 61.8%.
Failing to hold 862.00 should send it down to the area of 78.6% at 7.98 and the 7.89 major Gann square.
This was from our Grains Weekly update for December Wheat Futures,
The current rally continues to make higher highs and higher lows, always a good sign and on any setback from 900.50 we would want to see it hold 38.2% at 852.00. Provided it can, the short term trend remains positive and you can look for new highs for this leg up.
Monday's low was 854.25 and it has rallied 50 cents so far.
If you like this kind of analysis and trade the Grains, give us a look Grains Weekly update.
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