The chart is key to this analysis.

In our last post on Gold we said this,

Use 2706.50 as the swing point for the week.

Below it, look for the area of 2578.40 and 2561.00, this is a major Gann square, 38.2% back to the 6/10/24 low and 23.6% back to the February low. Any setback that holds the area of the 2639.40 major Gann square and 23.6% back to the 6/10/24 low at 2626.00 keeps the trend extremely positive and new highs can quickly follow.
 

10/12/24

As you can see on the chart it traded below the 2639.40 major Gann square and held 2626.00 (23.6%) perfectly, it has rallied $50 so far. What to look for now is down 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 43 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.

Gold

December

(GCZ24) 

From last week,

This week's high hit the short term target at the 2706.50 major Gann square.
Use 2706.50 as the DSP for the week.
Above it the short term target is the 2775.40 major Gann square. The long term target remains at 2841.50.
The key area to look for on a setback from here is 2578.40 to 2560.00, this is a major Gann square, 38.2% back to the 6/10/24 low and 23.6% back to the October 2023 low.
Any setback that holds 23.6% back to the 6/10/24 low at 2625.00 is extremely positive and new highs should quickly follow.

The setback from the 2706.50 major Gann square on 9/26/24 has now traded below the 2639.40 major Gann square and held 23.6% at 2625.00 and a quick rally followed.
 

Use 2625.00 as the DSP for the week.

Above it, the short term target is the 2775.40 major Gann square. The long term target remains at 2841.50. You will also have to watch 78.6% back to the 9/26/24 high at 2692.00, a failure to make a new high in this area can cause a sharp selloff.

Below it, the key area below 2625.00 is 2578.40 to 2560.00, this is a major Gann square, 38.2% back to the 6/10/24 low and 23.6% back to the October 2023 low. The longer term swing point is the 2458.00 major Gann square, this is also 38.2% back to the October 2023 low.

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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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