What Will Turn Soybean Meal Higher, Key Levels To Watch In Grains
Grains
Soybeans and Corn have hit key levels below that we think can be the base for the next big rally. For July Soybeans that level was 1141.00, this was 61.8% based on the continuation chart. In Corn it was 410.00 and this was 78.6% based on the continuation chart. As long as these levels hold, big things can happen. Wheat still needs to find the big level to rally from and we think it will be the 500.00 to 490.00 area, until then you have to watch the Fibonacci retracements above to see if anything is changing.
This is our analysis for this week's update in Soybean Meal.
3/28/24
Soybean meal
May
From last week,
Use 330.50 as the swing point for the week again.
Above it, look for 38.2% back to the 11/8/23 high at 367.00. Any rally that can't get above 23.6% at 353.30 keeps the trend extremely negative, this is also a major Gann square.
It continues to hold above the 330.50 major Gann square, but has been unable to get above the tightest resistance at 353.30, keeping the trend very negative. With no new high, or low the levels from last week are the same.
Use 330.50 as the swing point for the week again.
Above it, look for 38.2% back to the 11/8/23 high at 367.00. Any rally that can't get above 23.6% at 353.30 keeps the trend extremely negative, this is also a major Gann square.
Below it, look for the area of 310.00 to 301.80, this is 78.6% on the long term chart and a major Gann square. On an extended move lower look for the next major Gann square at 274.20.
ONE44 Guidelines
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 38 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines.
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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.
