Some things to watch for...
Now that all the markets did have the quickly rally that we thought "should" happen after the key long term levels held. Some of the markets held it perfectly and others plunged below only to close back above.
From our 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 did the one thing to watch for,
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 can now focus on what it needs to stay above to keep the rallies going and what targets above can send it right back down.
It will mainly come down to the Fibonacci retracements and the ONE44 rules and guidelines. If the level above that it stops at is a retracement we will know what to look for on any setback based on the ONE44 rules and if there is no clear reason for a top we will watch the 23.6% and 38.2% retracements. The 23.6% level keeps the trend extremely strong and the 38.2% level needs to hold to keep the trend intact.
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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