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Weekly Grain update 4/17/22

Weekly Grain update 4/17/22



After making a lower low last week and getting right back above it, the rally took the May Soybeans up to the 1677.75 major Gann square, where they spent the week trading around it. The high for the week hit 61.8% back to the contract high and the low held 38.2% of this rally to the tick at 1651.50. The Beans have already hit their long term target of 1765.00 in the May contract, but still have done nothing wrong to say the market is turning over. Last week's low in the November Beans came right to the combination area of 1403.00 and 1890.00, this was 23.6% to the contract low and 38.2% to the 11/9/21 low and in this week they have now come into some resistance.


The low on 3/29/22 hit 23.6% back to the 9/10/21 low and then closed right back above the 734.00 major Gann square, following the ONE44 23.6% rule, we know this is a sign of a runaway market.  In the December contract the low on 3/29/22 also hit 23.6% at 631.00 and the rally that has followed really looks to be a runaway market.We are still looking for the long term target above in both contracts.


In the May contract the spike below the long term swing point on 3/29/22 hit 61.8% back to the 1/7/22 low and the 971.00 major Gann square. The $140 rally from there has come into some resistance this week and the upside target remains the same. In the December contract the 3/29/22 low hit 78.6% at 950.00, this was the target after hitting 78.6% up at 1045.00, this was based on the ONE44 78.6% rule. The rally from there has now taken them to new contract highs and the long term target remains the same.

We will be moving into the July contract for all Grains in next week's update, in this one we will be adding the July "Law of Vibration" charts and it will be the last one for the May contracts. We will add the Hourly Fibonacci charts for July next week. We will continue to watch the May contracts and if anything stands out differently from the July contract we will alert you.

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