Lean Hogs Bull Run Ends At A 61.8% And 78.6% Fibonacci Retracements, Grains
Lean Hogs
June
Hogs have been a classic example of why the Fibonacci retracements should be very important in your analysis. Given a few basic rules and guidelines from ONE44 Analytics you can understand what the potential is when a retracement holds and when it fails.
The chart below speaks volumes.
Almost every high and low hit a Fibonacci retracement and if not then it hit a major Gann square.
The last Bull run started when it hit 23.6% on the continuation chart on 1/2/24. The first rally took it to 61.8% back to the contract high on 1/31/24 and the setback from it held 38.2% of the rally at 94.27 on 2/13/24 ( also a major Gann square). The rally from 94.27 took it to new highs as would be expected and the setback from there held 23.6% at 99.65 keeping the trend extremely positive and again new highs followed.
The eventual top came when it hit 61.8% on the continuation chart at 107.70 and the 109.10 major Gann square. The setback from there held 38.2% at 101.10 on 4/15/24 perfectly, but the rally from it failed to make a new high in the area of a 78.6% retracement at 107.70. Following the ONE44 78.6% rule, we know the first target is 78.6% the other way and that has already been achieved. The second part of the rule is, that it can be the end of the Bull run for now. This clearly seems to be the case.
Now,
The ONE44 61.8% rule states that the target is 61.8% the other way after hitting 61.8% (107.70) and this is 96.00. On an extended move lower watch for 78.6% of the same move at 92.20.
Use the 99.09 major Gann square as the swing point.
Above it, look for 78.6% back to the high at 107.35.
To See how all the Grains bottomed at a Fibonacci retracement you can view this post.
ONE44 Analytics has done over 35 videos on how to use the Fibonacci retracement with our rules and guidelines. This is our latest.
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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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On the date of publication, Nick Ehrenberg did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
