Tech Guy Comments on the Soybean Market 1/25/26

There are 2 technical concepts going on in the soybean market currently: A pattern called a Narrow sideways channel and a market's response to gaps. Soybeans traded in a narrow sideways channel from August 2024, then broke out higher in October 2025. The break higher produced a big gap up on the continuation chart, while also closing a gap to the left on the rally upwards.

Gaps are areas on the chart that need to be filled. Therefore, gaps become like a magnet for price - a target for price to trade to. After the break higher, beans needed to test the breakout area and also fill the gap produced from the breakout in the form of a correction down. The breakout higher probably indicates higher prices, even with the deep correction.

A sideways channel is like a body at rest, whereas a breakout is a body starting a motion, like rolling down a hill - the body is more likely to continue the motion. Also, while in the channel, price marked a series of higher lows, indicating the propensity for higher prices. Note the 2 trendlines connecting the lows on the chart. The correction from the breakout produced a steeper upsloping line, indicating the law of acceleration.

Please note the words, lines and gaps on the soybean chart here, and hopefully what has been stated above will make more sense. After all, they say a picture is worth a thousand words.

The Amazon River is the world's second-longest river and has more water volume, by far, than any other river in the world. Although it is 4,300 miles long (6,920 kilometers), there is not a single bridge across the mighty Amazon. Why?

During the rainy season, the Amazon width will expand from a relatively narrow quarter of a mile or less to 2 to 5 miles wide. The jungle soil is much deeper than anyone knows and is not fit to support bridge construction. Fortunately, not very many people live in the Amazon jungle and there is no financial benefit to building the most expensive bridge the world has ever seen.

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