Weekly Grain update 6/15/23

A few things to keep in mind.

The big rally in all of these markets did not come out of nowhere.

Each of them hit key long term Fibonacci retracements. Our goal is to have you understand why we think what we think when we do our weekly updates. The beauty of Fibonacci retracements with the ONE44 rules and Guidelines is you can use them in every market and on every time scale. One of the rules is, when a market holds 38.2% of a move, we know that new highs/lows should follow to keep the trend intact and if not it can be the start of the trend change. This guideline is the same if it is calling for a $3.00 rally, or 30 cents. This is why we do our videos as well to show just how they have worked, where it is going is for our Premium Members and the Weekly Grain update.

From the 6/1/23 update,

July Soybeans, July Soybean Oil and July Wheat all plunged below their swing point for the week only to close back above them on the same day.

Soybean Meal

One thing to watch for, is a trade down to 61.8% back to last October's low at 387.50 and then closes above the 390.50 major Gann square, as this can cause a sharp rally.

Having done this in these markets from key long term levels it "should" be the beginning of a quick rally. Not getting a strong rally from here is not a good sign and the summer could end up being a sideways to down trade.

We cover more on this in our latest video if you haven't watched it HERE IS THE LINK

OVERVIEW

November Soybeans

From last week,

Use 1190.25 as the swing point for the week.

Above it, look for 38.2% back to the contract high at 1252.25. Any rally that can't get back above the 1222.00 long term swing point keeps the long term trend negative and new lows can follow.

Low was 1182.50 and today it hit 1252.25, a 60 cent rally from the swing point.

July Soybean Oil
From last week,

Use 51.90 as the swing point for the week.

Above it, with 46.35 being 61.8% the long term target is 61.8% the other way at 63.90. The short term target is the area of 38.2% at 56.50 and the 57.38 major Gann square. Any rally that fails to get above 23.6% at 51.90 is a negative sign and new lows can follow.

Low for the week was 52.20 and today it hit the short term target area of 56.50 to 57.38.

December Corn
From last week,

Use 518.75 as the swing point for the week.

Above it, the long term target remains at 61.8% (606.00) based on the ONE44 61.8% rule. (The 490.00 level was 61.8%). The short term target is the area of 38.2% at 563.00 and the 570.50 major Gann square.

This week's rally above the swing point for the week hit the short term target area of 563.00 to 570.50.

July Wheat
From last week,

Use 616.00 as the swing point for the week.

Above it, the short term target is a combination of 23.6% back to the 10/10/22 high and 38.2% back to the 2/14/23 high at 663.00.....

Low for the week was 618.50 and we continue to look for the short term target of 663.00.

July Lean Hogs
From last week,

It had one close above 87.58 and we will use this as the swing point for the week.

Above it, look for 61.8% at 96.39, this is also a major Gann square. There is one other major Gann square to watch for resistance at 91.79, use it as the swing point if closed above.

Low since then was 86.97 (didn't close below) and rallied another $6.00, we continue to look for 96.39.

Being this is a weekly update we give all the key levels to watch for the week using Fibonacci retracements and Major Gann squares. We set up scenarios to look for when a level holds, or fails based on these methods, so it is very important to know for yourself how to use them following the ONE44 rules and guidelines. The best way to get a better understanding of these methods is to read all the posts (even if not on Grains) and watch our YouTube videos, as we explain why we think what we think based on the rules and guidelines. It is also important to view all the charts, as they have the key levels marked on them, if there are extended moves.

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