Gold

(GCZ24) 

Educational

The chart below 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 the 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 cause wide swings and keep 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.

We have done 44 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.

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Actionable

11/23/24

GCZ24

From last week,

To add to the fact that it took out the tightest support at 2702.00, the first rally stopped at 38.2% (2706.50) saying the short term trend has turned negative. It also took out the first key support at 2602.00, so we will now watch the retracements above to see if this can be a longer term top.

Use 2602.00 as the swing point for the week.

Above it, getting right back above 2602.00 can send on a good run at the highs again, so the longer term target is 78.6% back to the ATH at 2745.00. The short term target is 61.8% of the same move at 2706.50, this is also a major Gann square. Any rally that can't get above 38.2% at 2639.40, also a major Gann square would be a very negative sign and a new low can quickly follow.

On Monday it got right back above the long term 23.6% level of 2602.00 and this definitely sent it on a good run. It blew through the tight resistance at 2639.40 and hit the short term target of 61.8% at 2706.50, this was also a major Gann square, it did close above it and this makes it a key level for next week.

Use 2706.50 as the swing point for the week.

Above it, continue to look for 78.6% at 2745.00. This area will be a key test of the idea of a longer term top being in. A failure to make a new high in the 78.6% area can send this market sharply lower (ONE44 78.6% rule). Above 2745.00 there is one major Gann square at 2775.40 to use as a swing point when closed above, before it goes for the cluster of major Gann squares at 2841.50.

Below it, with 2706.50 being 61.8% the target is 61.8% the other way at 2610.00 based on the ONE44 61.8% rule. Any setback that holds 38.2% at 2652.00 is a strong sign and new highs for this leg can follow.

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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