ONE44 Analytics where the analysis is concise and to the point
Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.
For the ONE44 Fibonacci rules and guidelines to help with this article, go here.
Charts are courtesy of Barchart.com
We will start with a paragraph from our last update on 1/30/21.
"The rally from the 11/30/21 low hit 78.6% on 12/27/21 and the break could only go 23.6% back on 1/3/22 and again on 1/13/22. This also held the 587.75 major Gann square. The 23.6% rule states, "extremely strong, or weak markets will only go 23.6% back. This is typically a runaway market". Our swing point was 624.75, below it look for the short term swing point at 587.00, this is a major Gann square and 38.2% back to the 9/10/21 low."
As you can see on the chart below, all it could do was setback to 23.6% of the move up, this was 610.00, keeping the trend extremely positive. A rally from 610.00 should send it to new highs for the move and a failure to do so should send it to 38.2% at 590.00, also in this area is a major Gann square at 587.00. On a bigger break you can look for 23.6% of the contract high and low at 570.00, this is also the 200 day average.
With new highs we are looking for the next major Gann square at 660.75 and 61.8% back to the ATH based on the Nearby chart, this is 665.00. Failing to turn lower from this area should send to the next major Gann square at 700.25. Our long term target remains 810.00.
Beans did not even hesitate at 61.8% (1485.00) and have not hit a meaningful retracement since 1360.00 on 1/18/22, this was also a major Gann square. It is now above 78.6% (1571.00) and the 1560.25 major Gann square. Provided they can close above here, look for the next major Gann square at 1672.25. Our long term target remains at 1765.00.
With a close below the 1560.25 today, look for a setback that can take it to 38.2% of the move up from our long term swing point, this is 1440.00. As always, we watch all the retracements on every move to see just how weak, strong the market is regardless of the longer term target, so is all it can setback is to 23.6% at 1495.00, the market remains extremely strong. Even after today, use 1560.00 as the swing point.
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If you are looking for option plays to go with the ONE44 levels, we highly recommend going to the Barchart webinar library where John Rowland has plenty of information on Option strategies.
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