Wheat

The chart is key to this analysis.
(ZWK25) 

May

Wheat needs to get above 565.00 to turn the short term trend positive. This is 38.2% back to the 2/18/25 high. When using the ONE44 38.2% rule,

38.2% is the single most important retracement and is the level we use for the "Golden Rule". This rule being, " any market that is going to keep its current trend must hold 38.2%". As long as it does the trend will continue and it should make new highs/lows from that retracement.

The past week has been stopped by 38.2% (565.00) and failing to get above it keeps the short term trend negative and a new low can follow. When you look back at the 10/2/24 high it hit a 38.2% retracement back to the contract high at 640.00, it did have one close above it and this is acceptable. The break from that area took it to a new low as we would have been looking for. The high on 2/18/25 fell 4 cents short of the new 38.2% level keeping the long term trend negative and again a new low followed.

NOW,

Use 565.00 (38.2%) as the swing point for the week.

Above it, look for the combination retracements at 586.00, this 23.6% back to the contract high and 61.8% back to the 2/18/25 high.

Below it, look for 78.6% back to the 3/4/25 low at 537.00. Failing to make a new low in the area of a 78.6% retracement can be the start of the next Bull move, per the ONE44 78.6% rule.

We have done 45 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines. These Videos are worth watching even if it is not in the market you are trading, as the ONE44 rules and guidelines are the same for every market. You will also see why we believe the Fibonacci retracements are the underlying structure of ALL markets.

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