Can A 78.6% Fibonacci Retracement Stop The Cattle Rally Again?

Live Cattle

The charts are key to this analysis

(LEQ24) 
August

There 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 cause wide swings and keep 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.

Following some of the ONE44 rules above we will analyze this market from the 4/12/24 low when the market hit 78.6% of the 12/6/23 low to the 3/21/24 high at 168.25. Using the 78.6% rule our long term target was 78.6% the other way at 181.35, this happened on 5/22/24.

It did hit a couple other retracements before it got there and it also hit a couple major Gann squares too. You can see a lot of other highs and lows coming at major Gann squares too.

After hitting 78.6% on 5/22/24 our long term target was 78.6% the other way at 170.48 (also a major Gann square), but as always we watch all the retracements on ever move to see just how weak, or strong the market is and you can see it hit our short term target at 38.2% at 176.49 (also a major Gann square) which keeps the trend intact and new high should follow.

This takes us to where we are right now, a failure to make a new high after holding a key retracement below (176.49) that comes in the 78.6% (180.85) area can be the end of the Bull run for now.

This is the Cattle Analysis our Premium Members received last Thursday.

Livestock

6/6/24

Cattle

August

From last week,

It had one close above 181.40, but closed right back below it the next day and this keeps the long term downside target of 78.6% the other way intact. With no new high this week the targets Above/Below remain the same.
 

Use 181.40 as the swing point for the week again.
 

Below it, with it being 78.6% (181.40) the long term target is 78.6% back the other way and this is 170.48, this is also a major Gann square. The short term target is 38.2% back to the 4/12/24 low at 176.49, this is also a major Gann square.

This week's break from 78.6% (181.40) hit the short term target of 38.2% and a major Gann square at 176.49

Use 176.49 as the swing point for the week.

Above it, look for a retest of the 5/23/24 high and 78.6% back to it at 180.80. On an extended move higher look for 78.6% of the contract high and 12/6/23 low at 186.40.

Below it, continue to look for 78.6% back the other way based on the ONE44 78.6% rule at 170.48, this is also a major Gann square.

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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