Soybean Meal

(ZMH25) 

Lean Hogs

(HEJ25) 

In this past week we have seen the Meal and Hogs react to a 78.6% Fibonacci retracement. Following the ONE44 78.6% rule, we know this retracement can cause quick swings in the market and that the first target is 78.6% the other way and they both just completed that target today. The second part of this rule is, it can be the start and end of a lot of Bull moves. In the case of the Hogs, it could also be the end of the Bull run for now (yet to be determined). For the Soybean Meal it could be the start of the next Bull run. Holding the levels (78.6%) that they both hit can now send the market 78.6% of where they just came from. Below is our update from 1/16/25 with the targets we were looking for in both markets.

Soybean Meal

March

From last week,

Last Friday closed right back below 315.00 and it blew right through 38.2% at 380.00. Today's close was below the 300.80 major Gann square and this level will be key for the next week.

Use 300.80 as the swing point for the week.

 Below it, look for 78.6% back to the 12/19/24 low at 293.00. 

The rally above the 300.80 major Gann square didn't last long and today it fell just shy of 78.6% at 293.00, this will be the key level for the next week.

Use 293.00 as the swing point for the week.

Above it, The short term target is 78.6% the other way at 315.50 based on the ONE44 78.6% rule. The long term target is the long term swing point at 335.00, this is 38.2% back to the contract high. Any rally that can't get above 38.2% at 304.00 is a very negative sign and a new low can quickly follow.

Below it,  a failure to turn higher from this area will give us only major Gann squares to look for support and then use as the swing point when closed below, the next one is 277.00.

Lean Hogs

April

From last week,

April had one close below 38.2% back to the 8/13/24 low at 85.50. Today's rally has already hit 38.2% back to the 12/3/24 high at 87.90 and this will be the key level for next week.

Use 87.90 as the swing point for the week.

 Above it, look for 78.6% back to the 12/3/24 high at 91.60. A failure....

The strong rally after holding 38.2% at 85.50, blew through 38.2% at 87.90 and fell just short of the 91.60 target of 78.6%, this will be the key level for the next week. A failure to make a new high in the area of a 78.6% retracement can send this market quickly lower. 

Use 91.60 as the swing point for the week.

Above it, a failure to turn lower from this area will give us only major Gann squares to look for resistance and then use as the swing point when closed above, the next one is 95.35.

Below it, the short term target will be 78.6% the other way at 86.07 per the ONE44 78.6% rule, this is also a major Gann square. The long term target is 61.8% to the 8/13/24 low at 80.60.

We have done 44 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.

Here is the latest.

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