Live Cattle

(LEM25) 

The chart is key to this analysis.

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.

When a market does react to 78.6% it usually creates wide swings that go through all the other retracements, this either happens in very large trading ranges or very small, it is also the level hit most often when the market is reacting from 23.6% and 38.2% and fails to make the new high/low. This is where a lot of Bull runs start and end.

Friday it hit 78.6% back to the 5/14/25 high at 216.90 and settled at 215.47, a failure to make a new high in the area of a 78.6% retracement can end the rally for now. If so the first target is 78.6% of where it just came from at 212.20. The rest of the Above/Below targets can be found in last weeks update.

5/22/25

From last week,

The rally above the 213.50 major Gann square failed to get to the  221.11 major Gann square and yesterday's reversal has already hit the tightest retracement of 23.6% back to the 3/4/25 low at 210.65 and this will be the key level for the next week.

Use 210.65 as the swing point for the week.

 Above it, holding the tightest retracement of 23.6% back to the 3/4/25 low would be a very strong sign and a new high can quickly follow. The short term....

It held the 23.6% retracement at 210.65 and that keeps the trend extremely positive, however you still have to watch for the 78.6% retracement back to the 5/14/25 high, a failure to make a new high in this area can cause a quick selloff. The key level will again be 210.65 for the next week. Without a new high all the Above/Below remain the same.

Use 210.65 as the swing point for the week.

Above it, holding the tightest retracement of 23.6% back to the 3/4/25 low would be a very strong sign and a new high can quickly follow. The short term target is 78.6% back to the 5/14/25 high at 216.90, failing to make a new high in the area of a 78.6% retracement after holding 23.6% (210.65) would be a negative sign and a quick selloff can happen. Above that there are only major Gann squares above to look for resistance and then use as the swing point when closed above, the next two are 221.11 and 228.56.

Below it, the short term target area is 23.6% back to the 8/21/24 low at 207.20, 38.2% back to the 3/4/25 low at 205.90 and the 205.37 major Gann square, holding this area can send it quickly back to the high. The long term target is 38.2% back to the 8/21/24 low at 200.15, this is also the long term swing point.

We have done 47 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.