Lean Hogs have been trading in a classic ONE44 61.8% trading range. Soybean Meal Analysis.

Lean Hogs

(HEZ23) 

December

This is the first part of ONE44 61.8% rule,

Whenever the market holds 61.8% of a move, look for it to go 61.8% of where it just came from. This usually happens when a market is directionless, or in a consolidation period.

There is more about the 61.8% retracement in this video.

From last week,

December has been caught between 61.8% retracements. The June high was just short of it at 78.55 (61.8%) and the 72.28 major Gann square, the setback from there held 61.8% back to the 5/26/23 low at 71.40 in August. The rally from it just hit 61.8% back to the contract high at 78.55.
 

Below it, look for it to complete the 61.8% to 61.8% move at 71.65......

It completed the 61.8% target at 71.65 (low for the week,71.62) The next part is why we put at the top of each Weekly update that,

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.

As you can see on the chart below, the rally from 71.65 has already hit what would be the target when using the ONE44 61.8% rule at 76.00 (61.8%) today.  

Use 76.00 as the swing point for the week.

Above it, the short term target is the area of the 72.28 major Gann square and 61.8% at 78.55. Once it can get out of the 61.8% trading range, look for 81.06, this is a major Gann square and 78.6% back to the contract high.

Below it, Short term target is 61.8% at 71.65 again and on an extended move lower look for 78.6% at 69.62, this is also a major Gann square.

Soybean Meal

(ZMZ23) 

From last week,

Use 388.50 as the swing point for the week.
 

Below it, it can still trade below 388.50, but we would want to see the close back above it and even better the 394.20 major Gann square to get the rally going again. Failing to turn up from 388.50 will give a downside target of the 374.00 major Gann square.

This is 78.6% of the 8/17/23 low and 8/28/23 high, it is also the 6th 78.6% retracement hit in the last 3 months. There was one close below it and the next day was right back above it, but it has not closed above the 394.20 major Gann square yet.

Use 388.50 as the swing point for the week again.

Above it we will follow the 78.6% rule again, so the target is 78.6% back to the 8/28/23 high at 414.00, this is also a major Gann square.

Below it, look for the 374.00 major Gann square.

***Once it can clear either of the 78.6% levels of 422.00, or 377.00 we will update on the long term targets.

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.

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