How Much Tighter Can They Windup The Oats

Oats 

(ZOH24) 

This is an update to the post we did last week. 

March Oats continue to trade up against 23.6% back to the contract high at 384.00. It has hit this level 7 times in the last 2 months and each setback from it has been smaller. It is very tightly wound up and looks to be ready to move quickly higher. One thing you have to watch out for is, a trade of 5 to 10 cents above 484.00 and a close right back below the 380.50 major Gann square, as this can cause a sharp selloff. With a solid close above 384.00 all the targets from the last update below remain the same.
March

Here is the short of it,

Use 384.00 as the swing point for the week.

Above it, the short term target is 413.00.

Below it, look for the previous major Gann square at 340.25

Below is why,

Oats have traded sideways for 3 months now, mainly between 23.6% back to the contract high at 384.00 and 61.8% on the long term chart at 336.00. In the same area are the major Gann squares of 340.25 and 380.50. 

Once it can finally clear 384.00 we will be looking for 38.2% back to the contract high at 413.00. The long term target is 61.8% at 458.00, this is the target based on the ONE44 61.8% rule, it is also a major Gann square.

A failure to get above 384.00 can send it back to the previous major Gann square at 340.25 and 61.8% on the long term chart at 336.00.

We just did a video explaining more on this and the Note market.

You can find it here.

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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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