Short Term Trading Weekend lounge 9th-11th Dec, page-60

I'm not an experienced trader by any stretch but i'll throw in my 2c. I don't believe that this is a good example of a gap filling. Gaps are TA based and generally self fulfilling as buyers hold off buying until late the gap fills. If enough people feel the same way then buying pressure will ease and so the price will slide back to the gap where buyers step up and then the gap seemingly filled by divine intervention and bounced right at the closing of the gap.



Not knowing the story of the company in question i wont comment on that but imagining what could happen in a situation where a company aquires an assetbfrom a big name it could seem that a huge FA prospect came into their holdings extra hype of the prospect might have been included also the market may have been more positive than it should be. Then not much eventuates from this prospect and this resulted it a steady decline as the purchaser doesn't have the capital to develop on its purchase.

The gap will fill as there is a realisation that it may not eventuate and a new direction is needed.

It could be said that a failed stock will close all gaps and a successfully company will leave gaps open. Just at a glance I checked CSL chart that shows a gap late 2012 that is still open. If you wanted to hold CSL but was worried about that gap you would still be on the sidelines 45 bucks above where you could have got in shortly after the gap.