Fibonacci In Corn And Cattle, Come On!

At ONE44 Analytics we believe the Fibonacci retracements are the underlying structure to all markets. 

Our aim is to expand on this subject in the Weekly Grain/Livestock update and in our many YouTube videos.

Following a few basic rules you can get a better understanding of what can happen when a level holds and when it fails to hold. Below is the analysis for  CORN ETF and Live Cattle. The charts are key to following this analysis.

CORN ETF

(CORN) 

You can see on the chart below how many times the market has hit a Fibonacci retracement and reacted. We are going to start with the 6/21/23 high and bring you up to date and where we think it can go.

The high on 6/21/23 not only hit a major Gann square at 27.15, but 61.8% back to the 4/29/23 high. The normal target on a setback from there would be 61.8% the other way and they got that and more.

The next rally high on 7/24/23 hit two different retracements, One was 38.2% back to the 4/29/22 high and the second was 61.8% back to the 6/21/23 high. This sent it to new lows as would be expected after hitting a 38.2% retracement.

The recent rally high on 10/20/23 could only get to 23.6% back to the 6/21/23 high keeping the trend very negative, however failing to make a new low from that level and at a 78.6% retracement (22.05) can be the start of the next Bull run, based on the ONE44 78.6% rule.

Now

Provided it can hold 22.05 the next target is 38.2% back to the 6/21/23 high at 23.80, on an extended move higher, look for the long term swing point at 25.00, this is 38.2% back to the 4/29/22 high. On a failure to turn up from 22.05, look for the longer term 78.6% level at 21.35 to start.

Cattle

(LEZ23) 

Using this same type of analysis, 

This is the ONE44 update for December Cattle.

From last week,

Use 177.40 as the swing point for the week now.

Above it, holding the long term swing point can send this market right back to test the highs, or more. The longer term target is 78.6% back to the high at 189.00. The short term target is 38.2% at 183.40, any rally that can't get above it would be a negative sign and new lows can follow. The one thing to watch for is, it can still trade down to, or below 177.40 and that would lower the two levels just mentioned. With a close after hitting 177.40 back above the 178.96 major Gann square, it could produce a sharp rally back to the highs.

Currently.

This was 38.2% of the contract high and low and the long term swing point. It held perfectly and has produced a $7.00 rally so far.

Use the 185.23 major Gann square as the swing point for the week.

Above it, we are still looking for the longer term target of 78.6% at 189.00.

Below it, look for a retest of the 177.30 low and the 78.6% retracement at 178.96, this is also a major Gann square.

If either of the targets above, or below get taken out we will send out an update.

ONE44 Analytics where the analysis is concise and to the point

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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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