April Hogs, What To Look For From A 78.6% Fibonacci Retracement.

Hogs & Pork - Pigs feeding from trough in pen

Lean Hogs

The chart below is key to this analysis.



The high on 2/22/24 traded up through a 78.6% Fibonacci retracement at 87.25, but closed back below it. This is a key retracement, as it can cause wide swings when a turn comes from it. Here is the short version of the ONE44 78.6% rule,

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.

We also have a Video explaining more about it HERE.

This is the Lean Hogs Update we put out last week, all of the levels mentioned are still valid.


Lean Hogs
From last week,

Use 84.50 as the swing point for the week.

Above it, look for 78.6% of the contract high and 1/2/24 low at 87.25......

From two weeks ago,

Above it, provided it can get right back above it the short term target is 78.6% at 84.50. The long term target is the 90.30 major Gann square.

After getting only one minor close below 38.2% at 80.70 it has gone on to new highs as would be expected with a 38.2% retracement (ONE44 38.2% Rule) We were watching the 78.6% (84.50) level to see if there was going to be a failure to make a new high at this level, but it blew through that. It stayed above last week's swing point of 84.50 and today closed right at 78.6% at 87.25.

Use 87.25 as the swing point for the week.

Above it, the long term target is 61.8% based on the continuation chart at 97.00. The short term target is the next major Gann square at 90.30.

Below it, provided it stays below 87.25, the long term target would be 78.6% the other way, currently at 75.60. The short term target is 38.2% at the rally at 82.35. Any setback that can't get below 23.6% at 84.80 keeps the trend extremely positive.

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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.

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.