Fibonacci 38.2% Retracement and Soybeans Key Level

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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.

Soybeans

(ZSQ23) 

The start of the current run up was on 5/31/23 when it hit 61.8% at 1195.00 based on the long term chart. Using the ONE44 61.8% rule we would have been looking for 61.8% the other way at 1402.00. This was achieved and more.

The first setback after getting through 1402.00 on 6/28/23 held 38.2% at 1351.00. Following the ONE44 38.2% rule,

The 38.2% level is the single most important retracement and is the level we use for the "Golden Rule". This rule being, " any market that is going to keep its current trend must hold 38.2%". As long as it does the trend will continue and it should make new highs/lows from that retracement.

As you can see on the chart the rally from 1351.00 did make a new high and had a $1.50 move before setting back again. This time it was only able to get back to 23.6% at 1430.00 on 7/7/23 and following the ONE44 23.6% rule,

Extremely strong/weak markets will only go back 23.6%. This is Typically a runaway market.

The rally this time went on another $1.50 higher and ended at the 1580.00 major Gann square. The setback from there takes us to today.

Using the 5/31/23 low and 7/27/23 high, 38.2% of the move is 1433.00, it hit this yesterday and following the ONE44 38.2% rule, this is the level it needs to hold to keep the trend intact and you can look for new highs. On a rally from here you always have to watch the 78.6% level at 1548.00, as this can cause a sharp setback and even end the Bull run for now. A failure to hold 38.2% can send it down to the area of 61.8% at 1341.00 and the 1326.50 major Gann square.

You can learn more about how to use the 23.6% and 38.2% levels with the ONE44 rules in this video.

Becoming a Premium Member will get you all these levels well in advance.

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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