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stocks gapping up/down

hi bintang,

thanks for your time and advice.

 

Hi charlestan , if a company had been upgraded  for its prospect n the gap was created  due to the optimism of the investors , normally this type of gap would not be filled if the environment never changed . Furthermore , this gap would provide strong support to the share price in any retracements . For examples , u can refer to the charts of  Rotary n Midas .

charlestan      ( Date: 21-Sep-2009 16:47) Posted: hi bintang, i suppose if a company is being revalued up and there was a run-up in price, then the gap may not be filled. My question is: if this same company has been trading at an upper range for some time with a well-defined support and resistance level: during a correction/retracement in the broad market, will the support take pre-dominance and hold strength, or more likely, it will drop below support to fill the gap. thanks

 

hi bintang, thanks for the explanation, really appreciated it :D

Bintang      ( Date: 21-Sep-2009 14:02) Posted: A gap represents a price range on a chart at which no trading takes place .Gaps can appear in an uptrend showing market strength or a downtrend showing market weakness . When a gap occurs in an uptrend, the current period 's low is higher than the previous period 's high . In a downtrend , a gap occurs when the current period's high is lower than the previous period's low . qwertyuiop00      ( Date: 21-Sep-2009 13:07) Posted: anyone here knows..?

 

hi bintang,

i suppose if a company is being revalued up and there was a run-up in price, then the gap may not be filled. My question is: if this same company has been trading at an upper range for some time with a well-defined support and resistance level:

during a correction/retracement in the broad market, will the support take pre-dominance and hold strength, or more likely, it will drop below support to fill the gap.

thanks

 

Hi charlestan , when a gap occurs on a chart , it is not uncommon that the price must to be filled , over time, the probability is that the gap would be filled ,since most counters trade in certain price ranges . However there is no reason why the gap must to be filled . So in actual situation , some gaps should be filled n some shouldn't , because some gaps are important while others are not .We could also see the gaps have different forecasting implications depending on which types they are and when they occur . In the case of  PEC , when its IPO was  40 cents , it started to trade from 68.5 cents , I  did not see any gap in its chart , because there was no trading at 40 cents .

charlestan      ( Date: 21-Sep-2009 14:33) Posted: hi bintang, will the gap always be filled later, esp big gaps? or can remain unfilled E.g PEC  ipo 40c , but trading range lowest 68.5 thanks   Bintang      ( Date: 21-Sep-2009 14:02) Posted: A gap represents a price range on a chart at which no trading takes place .Gaps can appear in an uptrend showing market strength or a downtrend showing market weakness . When a gap occurs in an uptrend, the current period 's low is higher than the previous period 's high . In a downtrend , a gap occurs when the current period's high is lower than the previous period's low

 

When Genting Sp started trading after the halt, I had expected it to gap up.

But since it didn't gap up at such a 'good opportunity', I am bearish on that stock,

Thus I sold at near the top (1.19) ! ... and is still in the money... 

charlestan      ( Date: 21-Sep-2009 14:33) Posted: hi bintang, will the gap always be filled later, esp big gaps? or can remain unfilled E.g PEC  ipo 40c , but trading range lowest 68.5 thanks   Bintang      ( Date: 21-Sep-2009 14:02) Posted: A gap represents a price range on a chart at which no trading takes place .Gaps can appear in an uptrend showing market strength or a downtrend showing market weakness . When a gap occurs in an uptrend, the current period 's low is higher than the previous period 's high . In a downtrend , a gap occurs when the current period's high is lower than the previous period's low

 

hi bintang,

will the gap always be filled later, esp big gaps? or can remain unfilled

E.g PEC  ipo 40c , but trading range lowest 68.5

thanks

 

Bintang      ( Date: 21-Sep-2009 14:02) Posted: A gap represents a price range on a chart at which no trading takes place .Gaps can appear in an uptrend showing market strength or a downtrend showing market weakness . When a gap occurs in an uptrend, the current period 's low is higher than the previous period 's high . In a downtrend , a gap occurs when the current period's high is lower than the previous period's low . qwertyuiop00      ( Date: 21-Sep-2009 13:07) Posted: anyone here knows..?

 

A gap represents a price range on a chart at which no trading takes place .Gaps can appear in an uptrend showing market strength or a downtrend showing market weakness . When a gap occurs in an uptrend, the current period 's low is higher than the previous period 's high . In a downtrend , a gap occurs when the current period's high is lower than the previous period's low .

qwertyuiop00      ( Date: 21-Sep-2009 13:07) Posted: anyone here knows..?

 

anyone here knows..?

 

hello, can any experts here enlighten me on why do stocks gap up/down at the opening min and at the closing min? is it because of a technical gap up/down or is it because of a lack of demand/supply of the particular stock? your replies will be much appreciated!