12/12/25 Afternoon CommStock Report – Chart Gaps Galore

Anybody around the grain market has now had to have heard about the soybean chart gap that is tugging futures back down toward it. The gap was opened on the Monday after the ‘framework’ for a U.S.-China trade deal was reached. Filling the gap for January soybean futures would take prices down to $10.63, but there would also still be another continuous chart gap open to $10.45 1/2 that was left from the now-expired November contract.   A gap is a spot where trading has skipped over a certain range of prices from one trading session or other time interval to the next. An up-gap can be opened when the next day’s price low stays above the previous day’s high and a down-gap is established when the next high holds short of the previous low. Unique types of gaps include breakaway gaps, runaway gaps, and gaps of exhaustion. Gaps can turn into psychologically-important points of support or resistance and they can remain open indefinitely.   The soybean gap fits with the characteristics of a runaway gap, which often occurs in continuation of a price trend and as a result of new fundamental input, like soybeans had with news of a…