Lean Hogs With Fibonacci And W.D. Gann Analysis

Lean Hogs

(HEM24) (HEJ24) 

June

Short of it,

It is now back at 61.8% at 97.65, use this as the swing point for the week.

Above it, look for 78.6% back to the contract high at 100.50.

Below it, since it already reacted from 38.2% at 94.27 we will be looking for 61.8% once again at 91.90.

Below is why,

We will be adding the June contract to our Weekly Updates soon. Here is what it has done so far based on Fibonacci retracements and Gann squares.

You can see on the chart where this market hit major Gann squares on the tops and bottoms when it didn't hit a Fibonacci retracement. Ideally we like to see it hit both at the same time, but each method has its own set of rules and guidelines.

For Gann squares, Short form,

Use each level as support and then resistance once taken out and the reverse when it starts as resistance. You can also use the next level as a target once it has taken out the previous level.

All of the Fibonacci retracements have different levels to look for when they hold based on the ONE44 rules and guidelines.

The low on 8/16/23 hit 78.6% of the 5/26/23 low and 6/26/23 high, following the 78.6% rule we would be looking for 78.6% back the other way and this was completed on 9/20/23 at 97.25. The break from there went 78.6% the other way again at 92.75 on 10/4/23. The next rally stopped at 61.8% on 10/6/23 and then went on to new lows and the bottom at the 89.97 major Gann square.

The rally from 89.97 major Gann square stopped at 61.8% back to the 6/26/23 high at 95.22 on 11/13/23. The break from it took it back to the 89.97 major Gann square on 11/27/23. The next two rallies from this square hit 38.2% back to the 6/26/23 high at 93.00 on 12/4/23 and 12/15/23.

The low on 1/2/24 hit 23.6% on the long term continuation chart at 87.65. This started the very quick rally up to 61.8% of the contract high and the 1/2/24 low at 97.70.

This brings us to where we are now. April Hogs also hit a 61.8% level and our original target was 61.8% the other way based on the ONE44 61.8% rule.

This was from the 2/8/24 update,

The break from 61.8% at 83.90 has already taken out 38.2% at 80.70, turning the short term trend negative.

Use 80.70 as the swing point for the week.

Above it, provided it can get right back above it the short term target is 78.6% at 84.50. The long term target is the 90.30 major Gann square.
 

Below it, continue to look for 61.8% at 77.25 based on the ONE44 61.8% rule. On an extended move lower look for the 73.49 major Gann square.

The next day it got right back above 38.2% at 80.70 and quickly went to the short term target at 84.50. This is why we always watch every retracement regardless of the longer term target. The direction can change, but not the rules.

In June it was much cleaner when it hit 61.8% above on 1/30/24 at 97.65 and 38.2% on 2/8/24 at 94.27, this is also a major Gann square.

It is now back at 61.8% at 97.65, use this as the swing point for the week.

Above it, look for 78.6% back to the contract high at 100.50.

Below it, since it already reacted from 38.2% at 94.27 we will be looking for 61.8% once again at 91.90.

ONE44 Analytics has over 35 videos on how to use the Fibonacci retracements, 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.

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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