Don’t forget about the gap…..and I don’t mean the store!
We had a beautiful gap higher of over 11% in the preopen. The fundamentals are well published and well known. Even though its great for those whove been in it, this is the rip that has been behind schedule for a few days now, and it may go higher fast, as sinificant resistance at 113.75-114 was ripped right through.….which now becomes support….so to speak. But it wiped out that entire range in the gap. So how much weight id give to that level becoming significant support resistance …… eh,…maybe, maybe not.
But a retest of the highs during the regular hours(118.6)… ( or possibly the the premarket given it saw 122 in the premarket) is likely if the market doesnt want to fall through 110.50 level before it makes another run down to try to fill that gap. That could be an hour from now, and it could be 3-5 days from now, but dont expect the market to give a whole more than tht back without SIGNIFICANT new fundamental news.
Dont forget,..the market has now already seen 122 in reasonable premarket volume, a lot of shares changed hands, so its not as if BOIL is going to be seeing uncharted levels in order for it to return to 122 now. so keep your eyes on the market.
But Ive commented on this market and its propensity to fill gaps much of the time, especially big ones. And as we saw with our last big gap, it took all of about 25 minutes to fill a huge gap. But support at 113.75 is significant and the gap runs down to 108.9…... That being said there are two contravening technical issues fighting with each other as to whats going to happen in a quieter session.
If your still in it , dont do anything rash. If your not in it, you MAY have a brief opportunity to catch it filling this gap on what may be a lighter volume day. At which point, again, personally, for me its time to back up the truck. But whatever you do avoid the temptation to chase this market or to buy it in an accelerted upswing in the afterhours or peemarket as it “usually” fades after the open.
But pay attention to the gaps…..they are not meaningless
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
淡定的惠特莫爾 : The market is too weak! Did you bring him down?
爷向你竖起中指 : Cooperate with the news, pull up the shipment, return the market? It has something to do with the market.
PhotoSynthOP 淡定的惠特莫爾: I am certainly not the market. This market has the same give and take as other markets operating with overbought and oversold characteristics that often take their biggest clues from the fear and or greed of traders…….Ebb and flow….not straight one way.
淡定的惠特莫爾 爷向你竖起中指: Thank you! understand
淡定的惠特莫爾 : This stock is very oscillating.
Commodity Bull : Need patience for this but fundamentally nothing changes won’t be surprise we see it continue the climb in the coming days. Waiting for a better price for re entry
PhotoSynthOP Commodity Bull: I hope so….the market took a pretty good run at that gap at the opening and got pretty close. The market spent the rest of the day forming a bullish pennant with a powerful upside but we’re up against that 118.5 resistance level which the market kept backing away from , but with ever decreasing recessions at each cycle. I think we are about to enter a explosive period where limits will be almost unheard of. And I think it’s coming potentially sooner than Even I’d anticipated. The continuation of that bullish pennant,and its rate of ascent despite the level of the resistance which its up against suggests a tremendous amount of upward momentum. It got through it in the post market,but let’s see where it is tomorrow morning. And I have to say, I have no idea where this will open tomorrow. Could do nothing and sit. Could fly higher. Or could drift downward a bit. How’s that for ambiguity.?
I’m not so sure I still believe this thing is feeling compelled to fill its existing gap given the strength and resilience the upward move sustained and held onto today. But I sure am not selling anything I’ve got now. Stay tuned
淡定的惠特莫爾 : I have a bad heart! The daily fluctuation is too big, and the market fell so much yesterday! I stopped my loss and left yesterday! Thank you for your help.