An interesting move in Soybeans last night. The market finished limit down with heavy offers. It looked nothing but bearish. The reopen saw the market trade down 15pts pretty quickly. Then a retrace to cover the gap, resistance at spot on 1669 held and the market fell always again. Classic textbook technicals. Sometimes trading is that simple.
The good thing about correlated markets that open and close at different times is the potential for gap trades. The opening gap will occur when one market makes a decent move while the other is closed. Once that second market opens, you’ll most likely see a gap in the direction that the first market has moved. This article will show you how to project an open and therefore determine if a trading opportunity exists.