Soybeans/SOYB ETF And 78.6% Fibonacci Retracement

Soybeans

SOYB ETF

(ZSF24) (SOYB) 

The chart below is KEY to this analysis!

The most recent high on 11/14/23 hit 78.6% of the 7/24/23 high and 10/11/23 low at 28.80. The target based on the ONE44 78.6% rule was 78.6% the other way at 27.10. This was achieved on 12/21/23. 

This is the short version of the ONE44 78.6% rule,

Any market that hits 78.6% should go 78.6% back the other way. This is also where a lot of Bull markets end and start.

 When a market does react to 78.6% it usually creates wide swings that go through all the other retracements, this either happens in very large trading ranges or very small, it is also the level hit most often when the market is reacting from 23.6% and 38.2% and fails to make the new high/low. This is where a lot of Bull runs start and end.

Now that it has hit the 78.6% target we will use the exact same rule for the longer term target on the upside and that is 78.6% at 28.55, there is also a major Gann square at 28.43 to add to the resistance. The short term target is 38.2% at 27.80, if this is all it can rally it is a negative sign and new lows can follow. It can still trade below 27.10, hitting the 26.94 major Gann square and then closing back above 27.10 would be a good sign and a quick rally can happen. A failure to hold the 26.94 major Gann square should send it to 61.8% of the 5/31/23 low and 7/24/23 high at 26.00.

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