Lean Hogs
(HEN25) (HEQ25) 

July

The chart is key to this analysis.
 

There are two methods we use at ONE44 to find support and resistance in the markets.

The first are major Gann squares, these are the yellow horizontal lines on the chart. On this chart you can see where the market turned multiple times at these levels.

The second is Fibonacci retracements and this is what most of this post will be about.

There are a few basic rules when using the Fibonacci retracements with the ONE44 rules and guidelines.

This is the short version.

A 38.2% level keeps the trend intact and new highs/lows should follow.

A 23.6% level shows the market is extremely strong, or weak.

A 61.8%  level can send the market 61.8% of where it just can from and cause wide swings keeping the market in a trading range.

A 78.6% level can send it 78.6% of where it just came from and even be the end or start of a Bull market.

As just mentioned you can see on the chart how well the market reacts to the major Gann squares and along with that are the Fibonacci retracements. 

The rally that started last August from the 87.50 major Gann square and ended at the 106.05 major Gann square. In Between that low and high you can see how the market remained extremely strong by holding the 23.6% retracements on 12/11/24, 1/2/25 and then on 2/3/25. The setback from the 106.05 major Gann square hit 61.8% of the 8/13/24 low and 2/18/25 high at 94.50. The rally from there failed to get above the 101.17 major Gann square and the break from it took it to the 87.58 major Gann square.

The rally from 87.58 has had three setbacks so far, one on 4/30/25 when it held 23.6% at 98.45. It also held 23.6% on 5/23/25 at 101.17, this was also a major Gann square. It is now at 23.6% once again back to the 4/9/25 low at 107.50,this is the swing point for the week.

Above it, the short term target is the 111.45 major Gann square. The long term target is 78.6% on the continuation chart at 116.49, this is also a major Gann square.

Below it, look for the 38.2% of the same move at 103.80, this is the level that needs to hold to keep the current trend intact.

You can get all of these levels before they happen by becoming a Premium Member.

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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