Provided you have been following our previous posts on Grains, you would know the meteoric rallies in Soybeans, Corn and Wheat all came from their long term swing points.
These were the 38.2% level from the contract highs and lows and as the 38.2% rule states,
Of these, the 38.2% is the single most important retracement and is the level we use for the "Golden Rule". This rule being, " any market that is going to keep it's current trend must hold 38.2%". As long as it does the trend will continue and it should make new highs/lows from that retracement.
We also know that many of the setbacks on this run up have only been able to 23.6% back and this rule states,
Extremely strong/weak market will only go back 23.6%. This is Typically a runaway market.
So, when runs like this happen you can go into the micro moves, or hourly charts. On the May Corn hourly chart above, you can see the low for the day on 2/25/22 was 38.2% back to the 11/9/22 low that also held 38.2% on the daily chart. The rally from it took it to new highs, as it should to keep the micro trend intact. The next setback from it went right to 38.2% of the 2/25/22 low, this was 712.00 on 3/2/22. The rally from there took a little longer, but it to sent the market to a new high. The quick 49 cent break from 782.75 took it right to 38.2% to the 2/25/22 low, this was 735.00 where a quick 25 cent rally followed.
The last 3 retracements all happened when this market could not even retrace 23.6% on the daily chart. This just shows how important the Fibonacci retracements are to the trend and that the ONE44 rules and guidelines are the same on every time scale and for ALL markets.
Soybeans, Soybean Meal have hit their long term targets, Corn and Soybean Oil are getting close and Wheat has exploded through the long term target and more. We will now go over what to look for in each of these markets with the ONE44 Fibonacci rules and guidelines and the Gann Law of Vibration charts in the premium members section.