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Weekly Grain update 5/1/22

Weekly Grain update 5/1/22
Photo by Bogomil Mihaylov / Unsplash

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Here are some key things to watch for when using the Fibonacci retracements, or major Gann squares. Whenever a key retracement or major Gann square is taken out we want to see two close above/below it to confirm the violation of that level. When it is a major Gann square you can look for the next major Gann square above/below as the next target and use the one you just violated as the stop out/swing point. When it holds a major Gann square you can also look for the next one above/below and use it as the stop out/swing point. When it comes to the retracements, you have to follow the ONE44 Fibonacci rules and guidelines. Holding a retracement will give you a target and failing to hold it will also give you a target based on those rules.

Being this is a weekly update, it is best to know how the retracements work based on our rules and guidelines so that you can adjust them during the week. By using these guidelines you will also know what is possible when any of the levels put forth in these updates are hit.

If there is a major move during the week that throws all the previous levels out of whack we will send out an additional update to cover that.

To Start...

A very important thing to remember is that only the May Wheat contract has been below its long term swing point. Every other market is still well above theirs, or even the Intermediate and short term trend, until any of these get taken out, all the upside targets on the Trend Table are possible. When a market starts to turn lower it will begin to stop at 38.2% on rallies, just as it held 23.6% and 38.2% on each setback on the way up. The May wheat is the first of these to only be able to get back to 38.2% at 1121.00 after a good selloff. The next to watch is in the July Meal, it hasn't taken out the long term swing point, but it has a big enough setback to watch 38.2% on the next rally to see if there is any trend change happening.

Until any big changes happen you can use the Gann Law of Vibration  and Fibonacci hourly charts to trade short term.

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