Live Cattle
February
The chart is key to this analysis.
The reason we mention that this can possibly be a top is from two methods of finding support and resistance.
One is Fibonacci retracements and the second is major Gann squares.
The high on Friday was 15 cents short of the 196.35 major Gann square and it closed back below the 78.6% retracement from the 9/20/23 high and 8/21/24 low at 194.25.
In our latest update on 1/2/25 we said,
You will still have to watch for a trade up to 196.35 and a close back below 194.25 as this can cause a quick selloff.
We will now see if this does indeed turn the market lower.Â
Here is the full update,
The 38.2% level mentioned below has now moved up to 187.80 with Friday's high.
Livestock
Cattle
February
From last week,
We will still have to work off of the 38.2% (186.10) level and look for a new high above it (ONE44 38.2% rule), we will also watch 78.6% back to the high for any sign of a turn lower. The Above/Below remain the same from last week.
Use 186.10 as the swing point for the week again.
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Above it, holding a 38.2% retracement can send this market to a new high, per the ONE44 38.2% rule. Provided it makes a new high continue to look for the area of 78.6% at 194.25 and the 196.35 major Gann square. A failure to turn....
After holding above 38.2% at 186.10 it failed to turn lower at 78.6% (191.80) and went on to a new high. It is just short of 78.6% at 194.25 and this will be the key level for the next week.
Use 194.25 as the swing point for the week.
Above it, a failure to turn lower from this area will give us only major Gann squares to look for resistance and then use as the swing point when closed above, the next two are 196.35 and 202.65. You will still have to watch for a trade up to 196.35 and a close back below 194.25 as this can cause a quick selloff.
Below it, a break from 78.6% (194.25) longer term can send it to 78.6% the other way at 178.45 based on the ONE44 78.6% rule. The short term target is 38.2% at 186.35. Any setback that holds the 189.87 major Gann square is extremely positive and a new high can quickly follow.
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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.
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