This is a followup to our post on 10/5/24 Soybeans Run into Key Resistance at 1055.00

The break from 23.6% back to the contract high at 1055.00 failed to hold 38.2% at 1027.00 and this turned the short term trend negative. You can find what to look for now, below.

First here are a few rules and guidelines,

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% 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.

We have done 42 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.

This is our latest video on how to use the Fibonacci retracements with the ONE44 rules and guidelines.

Soybeans

(ZSX24) 
November

From last week,

It traded at 1055.00 all week. It was unable to get a couple solid closes above it and there was no follow through on the downside. A setback from 1055.00 can still send this market to a new low, or a good test of it, so we will be watching the 78.6% level as a target. The 38.2% level below will be key to the rally continuing, just as it was at 1002.00.

Use 1055.00 as the swing point for the week again.

The high from the last update was 1055.25 and it failed to hold 38.2% at 1027.00, it needed to hold this level to say a new trend has been established. This can also send it back to a new low, or a good test of it, since it is coming off from a 23.6% retracement above at 1055.00. 

Use the 1032.75 major Gann square as the swing point for the week.

Above it, the short term target is the 1083.50 major Gann square. The long term target is 38.2% back to the contract high and the long term swing point, taking it out turns the trend positive.

Below it, the short term target area is the 984.00 major Gann square and 78.6% back to the low at 981.00, this also brings it back into the long term 78.6% level at 978.00. In the longer term there are only major Gann squares to watch for support and then use as the swing point when closed below, the next few are 936.00,… 

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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