Live Cattle Fibonacci Analysis
Live Cattle Fibonacci Analysis
The chart below is key to this analysis.
There are two methods we use at ONE44 to find support and resistance in the markets.The first are major Gann squares, these are the yellow horizontal lines on the chart. On the chart you can see where the market turned multiple times at these levels.The second is Fibonacci retracements and this is what most of this post will be about.
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 43 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.
Please take a look at the chart and see just how many highs and lows came at Fibonacci retracements as well as major Gann squares.
11/7/24
Cattle
December
From last week,
There was no follow through with the close above 78.6% at 187.70. The big down day yesterday, held above the 185.29 major Gann square again and this level will be key for the next week.
Use 185.29 as the swing point for the week.
The tight range for the week had no follow through with the closes below the 185.29 major Gann square and swing point for the week. With the new low this week we can bring in a short term target above. All the levels below remain the same from last week.
Use 185.29 as the swing point for the week again.
Above it, the short term target is 78.6% back to the 10/29/24 high at 188.70, keep in mind that a failure to make a new high near the 78.6% level can cause a quick setback. The long term target area is the 191.86 major Gann square and 78.6% back to the contract high at 192.15. A failure to turn down 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 198.12.Below it, getting right back below 78.6% (187.70) will bring back the chance for a bigger break to 78.6% the other way at 177.00 based on the ONE44 78.6% rule. The short term target is 38.2% at 183.50, if this is all it can setback it would be a strong sign and new highs can follow.
ONE44 Analytics where the analysis is concise and to the point
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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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.
