Wheat, 61.8% to 61.8%, Gann square to Gann square, incredible moves!
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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.
Wheat
There have been some incredible moves in wheat that have adhered to the ONE44 Fibonacci rules and guidelines and W. D. Gann's "Law of Vibration".
Going back to the first setback after hitting 23.6% of the contract high and low at 874.00, it hit 38.2% of the current rally at 828.00 on 9/19/22. Following the ONE44 rules we should be looking for a new high for the move to keep the trend intact. This happened on 9/22/22 and the setback from this high held 38.2% again at 534.00, this also led to a new high for the move. Then once again it held 38.2% on 10/7/22 at 870.00, this rally took it to 38.2% of the contract high and low. Actually it fell 3 cents short, however the March contract hit it exactly.
The break from the 10/10/22 high took it to 61.8% of that high and the 8/18/22 low at 829.00. This was also a major Gann square.
This is what we posted on 10/23/22 in our Weekly Grain update,
Use 829.00 as the swing point for the week.
With 829.00 being a major Gann square, the target on a rally from here will be the previous major Gann square at 900.50 and with it also being 61.8%, we will be looking for 61.8% the other way at 906.00, so the target area on a rally is 900.50 to 906.00.
and on 10/30/22 we added this,
Above
Three of the five day's this week traded at 829.00 and Friday closed right at it. We are still looking for a rally to 61.8% the other way at 900.40, this is also a major Gann square.
As you can see on the chart, this target was completed on 11/1/22 and we then did a Special Grain update on this day saying,
It has now completed the 900.50 target based on the ONE44 61.8% rule and when using the major Gann squares. For the last two weeks it has been sitting on and above the 829.00 major Gann square, which was also 61.8% of the 10/10/22 high and 8/18/22 low. The target using the Gann squares was the next one up at 900.50 that also was 61.8% back up. Using the 61.8% rule, look for 855.00 below and using the major Gann squares look for 829.00 again.
As you can see on the chart again, it has hit the first of the two targets at 61.8% (855.00) and we are now looking for the second one being the 829.00 major Gann square.
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