![]() Sometimes a stock that gaps down/up and then attempts to retest it… or even trade into it a little… before turning on a dime and continuing down/ up. The stock gapped for a reason, so it’s not a blind buy and hold here. So when a stock can break into it, there is the potential to trade through it…also known as filling the gap. When a gap forms, it’s like a psychological void without any specific support or resistance. The good news is that stock gaps provide us with great trading opportunities.Īnd one of my favorite plays on a stock gap is the gap fill-this is when the price of the stock trades back through the gap, closing the space on the chart. Or, in the case of JOB, the announcement of a public offering for 83M+ shares at. Generally, this imbalance is caused by significant news coming out while the market is closed-this could be earnings that miss or beat expectations, a new product announcement, lawsuit, fraud, etc… 56, creating a gap down on the chart.Ī gap is simply an imbalance between buying and selling orders stacked up from when the stock market closed one day and opened the next. Stock GapĪ gap happens when a stock opens lower than the low or higher than the high from the previous day, creating space between the bars on the chart. Specifically, I will talk about what a gap fill is, why it happens, and show you a chart trading near that level. 51 high for a push-through into the gap.Īnd now I’m eyeing another stock chart that looks very similar… ![]() What I liked from there was the move back to the. 51 before pulling back and consolidating. I’ve seen stocks fill the gap, both up and down.įor instance, I took a trade in FAMI a while back.Īfter the gap down at the end of April, it made a high at.
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