Just for another perspective on TA. I have been tracking IHL for a long time and would state the following: (using Candles and GANN)
First if all, there are a lot of "common" gaps which are part of everyday daily movements, especially when there isn't high volume - so a pip or so doesn't normally classify as "tradeable or significant". This is IMO is the most likely case at .062. It is worth noting that with smaller volume stocks (at the time of the gap) we have to be very careful how the theory is applied.
Secondly, there are Breakaway gaps. If we study the gap at .049 this is almost certainly a PIVOT Breakaway. The pivot is followed by consecutive high volume days if you check the Equivolume chart and this is a trend reversal. These GAPS are signalling a change in trend and they are not required to be closed. Think of major rerates in stocks due to news, take overs, deals - these are usually not filled. They are a signal of something else - trend change. The bounce also aligns with GANN fan. When the market sees trend change and the fractals line up, they start buying.
BTW, the breakaway gap was also off the 20/50 day MA which is a correlating fractal. We are also trading above the 200 day MA which would have to break to fill this. Again, IMO this is not a gap that needs to be filled given the normal criteria. Worth remembering that if it was true that all gaps get filled, then it would be impossible to move forward no matter what the Ann for any company despite how great it may be. We know that this is not true.
Thirdly, you then have Continuations gaps. These gaps often signal further good news and the trend continues in the direction of the breakaway. Again, a pip is generally not considered as psychologically significant and if the volume is consistent then most of us traders ignore it. If you look at gold stocks and tech stocks lately - lots and lots of gaps that never look like filling. Or put it another way, they have about the same chance as any other. If you have a continuation gap, then the first gap is a breakaway by definition. I think the .062 (intraday .063) to .064 can be seen as one of these as it is really a pip difference on average volume; or possibly just a "common gap". There is a chance of it being touched of course but if it does, then it will IMO be short lived. Most likely intraday corrected.
Lastly there are gaps that are filled. These ones are significant and you can see them clearly. You could argue that Friday's gap up has already, or close to, being filled (within a pip or so). See Friday's notes why I think this needs to be seen in context.
There are a hot of GANN, fibbo and weekly fractals which indicate strong positive upside but will tackle that later. For example, the last run back in March 2020 had a 50% Fibbo retracement and a 50% on this last leg shows around .068 which would also fill a micro gap of a pip on pre breakout day.
Friday's Action:
The Ann IMO is significant in terms of market cap and if we see some main media attention to the covid story and what a breakthrough the trial indicates then things will get very interesting!
I watched a lot of the action and I am of the view that the selling is largely one player who is reducing/selling out for some reason. The selling was a pattern all day and I think traders recognise these quite quickly and back off; clumsy and similar parcels/timing. The SP was never given a chance to rebuild - (not a professional seller) and then the typical Friday trader closeouts weaken things. As most Friday late session does.
It does seem that there are a large number of buyers with very positive sentiment but have smaller parcels versus one main seller with high volume. The overall sentiment on the news I think is positive.
Also, I noticed that in the last ten minutes or so the selling/ask was very thin up to .075 with one larger parcel just moving the ask down every few seconds to close out for the day.
Companies generally rerate on bone-fide positive news and the market catches up with that. Sooner or later. I think sooner in the case of IHL....
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