Wheat Is Backing Off From A Long Term Fibonacci Retracement, Now What?

Wheat Is Backing Off From A Long Term Fibonacci Retracement, Now What?

The chart is key to this analysis.
(ZWZ26) (ZCZ26) (ZMZ26) 

We put out a new video titled,

ONE44 Analytics, How To Find The Long Term Fibonacci Retracements, New Video

In this video we show you how to get the longer term Fibonacci retracements even when the current contract is at its ATH.

As you can see on this chart the December Wheat hit 38.2% on the continuation chart back to the 2022 high. This level is only found when you use the continuation chart, because the current ZWZ26 contract was not trading back at that time.

With this being a long term retracement a bigger than normal setback is possible, however as always we will watch every retracement on any setback to see just how weak, or strong the market is regardless of the longer term target.

In that video we also showed where that same retracement is in the Corn and Soybean Meal. They are both trading above that level, but with it being a key long term retracement it will be the short and long term swing point. Provided it did get right back below it we will follow the ONE44 38.2% rule to get our downside targets.

This is the analysis we did for December Wheat in our Weekly Grain/Livestock Update,

Wheat

December

From last week,

The setback from the 712.00 (78.6%) swing point was muted and today's rally closed it above the 730.75 major Gann square and this will be the key level for the week. We continue to look for the long term swing point above.

Use 730.75 as the swing point for the week.

Above it, the long term target is 38.2% on the continuation chart at 799.00. Before then there are major Gann squares to look for resistance and then use as the swing point when close above at 753.75 and 776.50.

Every close was above the 730.75 major Gann square and swing point for the week and it got very close to the long term swing point at 799.00. We went over where this retracement came from in our latest video this week and how a bigger than normal setback is possible from a long term level like this. As always we will watch all the retracements on a setback from this area to see just how weak, or strong the market is. So far the setback has hit 23.6% back to the contract low at 737.00 and this will be the key level for the week.

Use 737.00 as the swing point for the week.

Above it, if this is all it can setback from a long term retracement the trend remains extremely strong and a new high can quickly follow. The short term target is 78.6% back to the 9/2/26 high at 783.00, a failure to make a new high in this area can cause a sharp setback. With a failure to turn lower from there the long term target is 61.8% of the same move at 980.00. Before then there are major Gann squares to look for resistance and then use as the swing point when closed above at 841.75, 881.75, 922.25 and 957.00.

Below it, the short term target is 38.2% of the same move at 702.00, this is the level that needs to hold to keep the short term trend positive. The longer term target is 61.8% at 645.00.Before then there are major Gann squares to look for support and then use as the swing point when closed below at 682.00 and 658.00.

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.

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