Live Cattle

(LEJ25) 

April Cattle closed below 195.50 (38.2%) on Friday another close below it will turn the long term trend negative. This is why we are looking at June Cattle for any added guidance on this possible trend change.

The 38.2% level 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.

With a second close below 195.50 you can look for the short and long term targets put in the last update. Getting right back above it on Tuesday can send this market back to the high and more per the ONE44 38.2% rule. As always we will watch all the retracements on every move to see just how strong, or weak the market is. The short term target area is now the 203.88 major Gann square and 78.6% back to the 1/28/25 high at 204.70. Any rally that can't get above 38.2% of the same move would be a negative sign and a new low can quickly follow, especially coming from a much bigger 38.2% level below.

Here is a look at where June is in comparison,

Live Cattle

June

The 38.2% level back to the 8/21/24 low is 189.70 and has not been hit yet. One thing you can watch for is a trade down to 189.70 and a close above the 192.32 major Gann square, it doesn't have to happen on the same day, but would be a very good sign if it did.

On a rally from where they are right now, the short term area is the 198.97 major Gann square and 78.6% back to the 1/29/25 high at 199.35. Any rally that can't get above 38.2% of the same move is a negative sign and a new low can follow. These levels will move down with any new low.

Failing to hold 189.70 turns the long term trend negative and the first target is 61.8% of the same move at 182.15. The long term target is …

One other note is that the farther out the contract (August, October...) the more it is above their 38.2% level, this is usually a strong sign.

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.

Here is the latest.

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.

Sign up for our Free newsletter here.
 

FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.