Agree that it formed quickly on this occasion, but disagree that breakaways don't form on downward trends also. In this instance, put in the context of the large engulfing candle beforehand and the significant increase in volume yesterday and today, in addition to the fact that it has gapped over the congestion, I would put getter odds on a breakaway as opposed to a common gap. Greater potential for the gap to form a new base of resistance now in my opinion. Unlike common gaps, the gap will not be filled anytime soon, if at all. Time will tell, as you say.
NMS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
