Grains Analysis & Why You Need Fibonacci

Wheat - Field of wheat

Why Fibonacci

If I had only one method to use to analyze the markets it would have to be Fibonacci retracements. 

ONE44 Analytics believes they are the underlying structure of ALL markets. They can be used on all time frames as well, so they are beneficial for day trading as well as long term trading and should be the starting point of analyzing any market.

In Grains there are so many different fundamental reasons that can move a market from weather, planting intention, crop production, geopolitical and on and on that it is extremely hard to get what is moving them, or be ahead of them. However, following some basic ONE44 rules and guidelines will allow you to know the trend and what changes it, as you will see in the Overview and what started the rally for each Grain.


Corn, Wheat and Soybeans are now making higher highs and higher lows and starting to hold 23.6% and 38.2% on the setbacks, always a strong sign.


The Corn rally started from a 78.6% retracement on 2/26/24, this was based on the May continuation chart that is now expired. The last setback in July held 38.2% at 455.25, this was also a major Gann square. It did have one close below it and we always want to see two consecutive closes through a level to violate it.

We are looking for 482.75, this is 23.6% back to the contract high and a major Gann square.

The Wheat rally came after failing to make a new low and held a 78.6% retracement on 4/18/24.

Following 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.

The rally from it has gone $1.50 so far, it also held 38.2% on 5/1/24 at 596.00 and then held 23.6% at 658.00 on 5/17/24 keeping the trend intact and very strong.

We are looking for 38.2% back to the contract high at 725.00.

The Soybean rally came from 61.8% retracement on 2/29/24 based on the July continuation chart.

The last setback on 5/9/24 held 38.2% at 1213.00, it never had two consecutive closes below it to violate the level and it went on to new highs for the move.

Based on the ONE44 61.8% rule,

Whenever the market holds 61.8% of a move, look for it to go 61.8% of where it just came from.....

We are looking for 61.8% back to the contract high at 1319.25, this is also a major Gann square.

You can find more on how to use the Fibonacci retracements HERE.


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.