Soybean Meal has now had four 78.6% retracements in the last month. Here is what to look for when a 78.6% retracement holds.
ONE44 78.6% guideline,

Any market that hits 78.6% should go 78.6% back the other way. This is also where a lot of Bull markets end and start.

 When a market does react to 78.6% it usually creates wide swings that go through all the other retracements, this either happens in very large trading ranges or very small, it is also the level hit most often when the market is reacting from 23.6% and 38.2% and fails to make the new high/low. This is where a lot of Bull runs start and end.

2/6/25

Soybean Meal

(ZMH25) 

March

From last week,

Staying true to the ONE44 78.6% rule, the market had another 78.6% to 78.6% move, this time down to 299.00 and this will be the key level for the next week. This is the fourth 78.6% retracement in under a month. It looks like it is building a nice base for another run higher in the longer term. We will be looking for the long term swing point to start.

Use 299.00 as the swing point for the week.

 Above it, the short term target is 78.6% back to the 1/23/25 high at 314.50. The....

The rally from 299.00 (78.6%) went right to 78.6% the other way at 314.50 per the ONE44 78.6% rule.  It still looks like it is building a nice base for another run higher in the longer term. We will be looking for the long term swing point to start. The 300.80 major Gann square will be key for the next week.

Use 300.80 as the swing point for the week.

Above it, with the base being built right now the long term target is the long term swing point at 335.00, this is 38.2% back to the contract high. The short term target is the 325.00 major Gann square.

Below it, the short term target is 78.6% of the 12/19/24 low and 1/2/25 high at 293.20. The long term target is the 277.00 major Gann square.

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We have done 45 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. How the Grains rally started.

Overview

May Soybeans, Corn and Wheat all held key levels below and now have hit longer term retracements above, or about to.

(ZSK25) 

Soybeans held the 1057.00 swing point for the week, this was 23.6% back to the 12/19/24 low. Yesterday it hit 1092.00, this is 23.6% on the continuation chart, if taken out it will turn the Intermediate trend turns positive. 

(ZCK25) 

Corn had a quick spike down to the 486.00 swing point for the week and then made a new high for this leg up. This was 23.6% back to the 8/26/24 low and a very strong sign. It is now approaching our target of 61.8% at 512.00. On a turn from this area we would be using the ONE44 61.8% rule for a target.

(ZWK25) 

In Wheat the setback from the 580.25 swing point held the 38.2% short term target at 565.00 keeping the short term trend positive. The rally from there hit the 593.00 target, this level is 23.6% back to the contract high and could cause a bigger setback.

(ZMH25) 

Soybean Meal continues to trade between 78.6% retracements. The swing point for the week was 299.00 (78.6%) and the short term target was 314.50 (78.6%), this was the fourth 78.6% retracement in a month.

(ZLH25) 

In Soybean Oil the rally from the 44.25 swing point hit the short term target of 47.54 this was a 78.6% retracement and a major Gann square.

(LEJ25) 

The setback this week in Cattle held above the long term swing point at 195.50, this is 38.2% back to the 8/21/24 low, above it a run back to test the recent high is possible and more.

(GFH25) 

The break from the 276.63 swing point for the week and a major Gann square hit the short term target at 266.44, holding this level can send it back to the highs very quickly.

(HEJ25) 

Lean Hogs continue to trade between 78.6% retracements of 91.60 and 86.07. The wide swings are not uncommon when dealing with the 78.6% retracement.

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