To me analysing gaps doesn't work when it comes to significant discoveries - why not? Because the day the discovery announcement is released the company's intrinsic value effectively increases by a very large amount, often multiples higher... thus giving us our sizeable gap as the market values the company a lot higher. In a lot of other industries and in forex gaps are much smaller and related to less significant news (relative to previous fundamentals). If you believe this gap is going to be filled it won't be because of investor psychology relating to chart patterns. It will be because they drill the crap out of this thing and find that their initial drilling was extremely lucky and there's not much more there. To me this is an absolute worst case scenario and not likely. Does it mean it couldn't happen? No, it could. In 6-12 months if the market gets bored it could happen. Disclosure: I rely primarily on fundamental analysis but use technical analysis to judge strength and money flow.
RTR Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
