Lean Hogs

The chart is key to this analysis.

Nearby

(HEM25) 

From last week,

The $4.00 rally from 96.70 has yet to make a new high for the move, but we will continue to look for this to happen based on the ONE44 38.2% rule, 96.70 will again be the key level for the next week. Without a new high all of the Above/Below remain the same. 

Use 96.70 as the swing point for the week again.

It still has not made a new high after holding 38.2% at 96.70 keeping the short term trend positive and it will again be the key level for the next week. With no new high all the Above/Below remain the same.

Use 96.70 as the swing point for the week again.

Above it, holding a 38.2% retracement keeps the short term trend positive and it can send this market to a new high. The short term target is the completion of the 78.6% (90.20) to 78.6% at 102.50. On a failure to turn lower from there the next level above it is a major Gann square at 104.30 and then 61.8% on the continuation chart at 107.50.

Below it, it got close enough to the 78.6% target (102.50) that we will use the ONE44 78.6% rule and look for 78.6% the other way at 91.00. On a failure to turn higher from this area, look for 78.6% on the continuation chart at 82.90.

There are two methods we use at ONE44 to find support and resistance in the markets.

The first are major Gann squares, these are the yellow horizontal lines on the chart. On the chart you can see where the market turned multiple times at these levels.

The second is Fibonacci retracements and this is what most of this post will be about.

There are a few basic rules when using the Fibonacci retracements with the ONE44 rules and guidelines.

This is the short version.

A 38.2% level keeps the trend intact and new highs/lows should follow.

A 23.6% level shows the market is extremely strong, or weak.

A 61.8%  level can send the market 61.8% of where it just can from and cause wide swings keeping the market in a trading range.

A 78.6% level can send it 78.6% of where it just came from and even be the end or start of a Bull market.

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.

If you like this type of analysis and trade the Grain/Livestock futures you can become a Premium Member.

You can also follow us on YouTube for more examples of how to use the Fibonacci retracements with the ONE44 rules and guidelines.

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