After several weeks of lower prices, having stored corn or soybeans is a discouraging position to be in. Technical analysts believe that prices move in certain chart patterns that often repeat themselves. Technical analysis and charts are readily available in many marketing newsletters.
Resistance prices are where previous rallies have stalled or market highs have occurred.
This increased activity tends to change the trend. If these support or resistance areas are broken, their role may reverse. For example, if prices go above a resistance price level, the resistance now becomes support. Gaps appear in price charts when one day's trading range occurs at higher or lower levels than the previous day, leaving a range of prices where no trading occurred on either day. Technical analysts expect many of these gaps to eventually be filled, suggesting prices will return to the area where the gap occurred.