Wheat Bottom Came Right At A 78.6% Fibonacci Retracement, 50 Cent Rally Follows

Wheat - Field of wheat at golden hour



The bottom on 4/18/24 hit a 78.6% Fibonacci retracement at 535.00. The reason this is so important is because of the ONE44 78.6% rule, short version below,

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.

The target after holding 535.00 was 78.6% back to the 4/5/24 high at 567.00, this was also a major Gann square. This was achieved yesterday and it rallied another 14 cents today (50 cents in total). As of right now it hit the first target based on the ONE44 78.6% rule and we are looking for it to be the base of the next Bull run. As always we will watch every retracement on all moves to see just how strong, or weak the market is regardless of the long term target.

We have done 39 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines. 

This one is on the 61.8% and 78.6% retracements.


This is what our subscribers were alerted to based on the 78.6% rule.

4/11/24 Update

The setback from the 567.00 major Gann square held the previous major Gann square at 543.25, as the sideways trade continued. We are still waiting for it to give us some reason to look for a rally other than hitting the long term target of 486.00. One of those signs would be holding 78.6% on a test of the current low.

 Use 567.00 as the swing point for the week again.

 Below it, the short term target is 78.6% back to the 3/11/24 low at 535.00. Holding this level would be a good sign and possible start of the next leg up based on the ONE44 78.6% rule. The long term 

4/18/24 Update

Today's low hit 535.00 (78.6%) we will see if this level can hold and be the start of the next leg up based on the ONE44 78.6% rule, or just go 78.6% back to the 4/5/24 high.

Use 535.00 as the swing point for the week.

Above it, the short term target is 78.6% back to the 4/5/54 high at 567.00, this is also a major Gann square, when and if it can clear this level we will bring in longer term levels above.

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.