Lean Hogs & The 61.8% Retracement

Lean Hogs & The 61.8% Retracement

The chart is key to this analysis.
(HEQ26) 

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.

The second is Fibonacci retracements.

Here 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.

We have done over 45 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines. These Videos are worth watching even if it is not in the market you are trading, as the ONE44 rules and guidelines are the same for every market. You will also see why we believe the Fibonacci retracements are the underlying structure of ALL markets.

Here is the latest Video

Using the ONE44 38.2% rule you can see the market remained in a strong position when the setback on 2/13/26 and held above the 38.2% retracement and the 105.20 major Gann square and then again on 3/25/26. The failure to make a new high on 3/30/26 and again on 4/8/26 hit 61.8% back to the contract high and below the 109.85 major Gann square. The next two attempts to rally hit 38.2% on 4/23/26 and 5/13/26 keeping the trend negative. The market has now hit the 61.8% target below and what follows is in our Weekly Grain/livestock Update for this week.

August

From last week,

The rally this week got one close above 105.90 (38.2%) and is currently below it, this will again be the key level for the week. If this is all it can rally after getting above the long term 38.2% level at 105.00 it is not a good sign and a new low can quickly follow. Without a new low all the Above/Below targets remain the same.

Use 105.90 as the swing point for the week again. 

Below it, keeps the short term trend negative and the short term target area is 61.8% back to the 11/14/25 low at 100.70 and the 100.30 major Gann square. The long term...

The big break after failing to get above the105.90 (38.2%) swing point (105.97 high) has now hit the short term target area of 61.8% at 100.70 and the 100.30 major Gann square, with 100.70 being 61.8% we will be use the ONE44 61.8% rule to get the long term target of 61.8% the other way.

Use 100.70 as the swing point for the week,

Above it, provided it can get right back above 100.70 the long term target will be 61.8% the other way per the ONE44 61.8% rule at 107.40. The short term target is 38.2% back to the 3/10/26 high at 104.40, this is the level that needs to be taken out to turn the long term trend positive again. Any rally that fails to get above 23.6% of the same move at 102.60 would be a very negative sign and a new low can quickly follow.

Below it, the short term target is 78.6% back to the 11/14/25 low at 97.60. A failure to turn higher from this area will give us only major Gann square to look for support and the use as the swing point when closed below, the next two are 96.08 and 91.53.

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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