Lean Hogs
The chart is key to this analysis.
(HEJ25)Â
April
The swing point for April Hogs was 86.40 going into this week. This was 38.2% and a major Gann square.Â
This was our downside view for our Premium Members,
Below it, turns the long term negative and the short term target area is the 81.47 major Gann square and 61.8% at 81.10. The long term target is....
Yesterday's low was 80.72 and it closed at 82.35. By holding this area it now gives us an upside target of 89.50. This is based on the ONE44 61.8% rule,
A 61.8% level can send the market 61.8% of where it just can from and cause wide swings keeping the market in a trading range.
NOW
Any rally that can't get above 38.2% back to the 2/12/25 high is a negative sign and a new low can quickly follow, this is also a major Gann square.
The first target on a failure to turn higher from 81.10 will give us a downside target area of the 77.80 major Gann square and 78.6% back to the 8/13/24 low at 77.42.
Previously the market held 38.2% at 85.50 (one close below it is ok) and then there were 3 retracements of 78.6% after that. You can see what to look for from these level here,Â
There are two methods we use at ONE44 to find support and resistance in the markets.
The first are major Gann squares, these are the yellow horizontal lines on the chart. On the chart you can see where the market turned multiple times at these levels.
The second is Fibonacci retracements and this is what most of this post will be about.
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%Â level can send the market 61.8% of where it just can from and cause wide swings keeping 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.
We have done 45 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines. These Videos are worth watching even if it is not in the market you are trading, as the ONE44 rules and guidelines are the same for every market. You will also see why we believe the Fibonacci retracements are the underlying structure of ALL markets.
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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FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.
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