4DS Chart for Long Term Holders, page-1590

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hashtagyolo

6,262 Posts.

1530

08/08/22

16:52

Post #: 62991521
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Originally posted by wilfran1pm: ↑

Oh No!!!! Not a GAP discussion again. I really can't understand why people find price Gaps so compelling. Some people seem to think that they form some sort of powerful vortex that has to or must suck the price back down prior to any future move up. My view is that a prior Price Gap has very little to do with price direction, but conversely Gap Edges do in many cases provide reliable support and resistance levels. The Close at 6.9c on 04/07/2022 did in fact leave a 0.1c Technical Price Gap, but how significant is this Gap? Note that the Volume of the prior Bar with a High of 6.8c, the bar that created the low of this Gap on 07/04/2022, was minuscule at a little over 1M shares traded (on the ASX) and well below the average Volume level. The bar with any meaningful Price and Volume action was the bar two days prior to the trading halt. Volume was significant at around 13.5M shares and the Low of that bar of 05/04/2022 was, no don't tell me, 6.9c!!!! So is there a real meaningful Price-Volume Gap or not. For me the answer is No! But who cares anyway. I like Kmtw's name for this type of Gap, a "hash gap", i.e. a Gap of absolutely no significance at all.

The Close today is still above the blue EMA's and the 9.2c level was rejected, but still all on very low Volume. It looks like the selling from Thursday and Friday last week has tapered off. The optimist among us would now be looking for a short term move up following this retrace to the blue EMA level. The pessimists would be watching for some longer term sideways price action in the price range down to the 50 SMA (8.8c). I don't know what I would call those who are waiting for a Gap Close down at 6.8c.

All IMO, good luck everyone.

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Jeanieus is the word you're looking for champion

4DS Price at posting: 9.4¢ Sentiment: None Disclosure: Held
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