Here Is What Fibonacci And W.D. Gann Have To Say About Lean Hogs

Lean Hogs

(HEZ23) 

December

First off the chart is critical to seeing how well this market adheres to the Fibonacci retracements and the W.D. Gann squares.

The Gann squares are fixed support and resistance levels that will be good until the end of the contract's life. Each contract/Futures and stock will have their own starting point of vibration.

When using the Fibonacci retracement with the ONE44 rules and guidelines you know what to look for when a level holds and when it doesn't.

You can see on the chart how the market reacted to the Gann squares on the highs and lows of each swing, in between there you can also see what Fibonacci retracements were held. 

It is always best if you can get a Gann square and Fibonacci level to line up, however each has its own rules to follow. The high on 6/27/23 fell short of the 78.28 major Gann square and 61.8% back to the contract high. The initial setback held 38.2% on 6/30/23, 7/19/23 and then 8/3/23 before going on down to 61.8% on 8/16/23 and 8/24/23. 

The rally from there took it back to 61.8% the other way as would be expected following the ONE44 61.8% rule and then a couple more 61.8% retracements on 9/25/23 and 9/28/23.

The rally after making new lows on 10/20/23 went right to 38.2% back to the contract high at 73.10. Following the ONE44 38.2%, you should be looking for new lows and then 61.8% at 60.55, however it is currently holding a 78.6% retracement at 67.30, which is also a major Gann square. Failing to make a new low after hitting 38.2% above and at a 78.6% retracement, there can be one of two things happening. The first is it goes 78.6% the other way at 72.80 and or it can be the start of the next Bull move.

For now,

Use 67.30 as the swing point for the week.

Above it, look for 78.6% the other way at 72.80.

Below it, look for 61.8% on the long term chart at 60.60.

You can see another post we did for Corn on Barchart here.

(ZCZ23) 

And one for Soybeans HERE.

(ZSH24) 

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. Video for 23.6% and 38.2%

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