Wheat

(ZWZ24) (ZWH25) 

Educational

The chart below is key to this analysis.

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.

Actionable

11/21/24

December
From last week,

Once it took out the 566.75 major Gann square it quickly got to the short term target area of 542.00 to 530.25. This area will be key for the next week. Just like the other Grains the market ran into key longer term retracements above on 10/2/24, the long term targets from these levels was new lows and now we will see if it can get right back above the 78.6% level at 542.00 to give us the base of the next rally.

Use 542.00 as the swing point for the week.
 

Above it, provided it can get back above 542.00 the short term target area is 38.2% back to the 10/2/24 high at 564.00 and the 566.75 major Gann square, if this is all it can rally it would be a very negative sign and a new low can follow quickly.....

It did get right back above 78.6% at 542.00 and that gives us a 78.6% the other way target based on the ONE44 78.6% rule, however it has yet to take out the short term target at 564.00 (38.2%), this level will be key for the next week.

Use 564.00 as the swing point for the week.

Above it, the short term trend turns positive and you can look for 78.6% back at 599.00 based on the ONE44 78.6% rule, there is also a major Gann square at 597.00 for added resistance.

Below it, the short term target is the 530.25 major Gann square. A failure to turn higher from there will give us only major Gann squares to look for support and then use as the swing point when closed below, the next two are 495.25 and 468.25.

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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