Nova Eye Medical (EYE) Chart Thread, page-238

Seeing as this is a charting thread and gaps seemed to be a hot topic this week can I add the below content for those interested as it relates to my reasoning behind why the gap on EYE was bound to close.

Below daily chart of another stock shows a large gap open on news last Monday and also retraces quickly back to the 62% Fib zone but there are a few distinct differences and has a case for this one becoming a "breakaway" gap. (in the short term)
For one, the days leading into the breakout was in decline rather than already growing by 20% (EYE) and secondly, the breakout was created from the SP lows.
Also worth noting is that now that the radical price action has settled down, the SP is trading in that beautiful zone between the 8ema and upper bollie after bouncing off the bollie median. (an entry signal).



An important point is, sure gaps are a technical point of charting but there is far too much time spent on them and there are many far more important indicators to focus on in the short terms. IMO, all attention should be firmly focused on where the indicators are currently taking us and not be distracted by what's in the review mirror. Especially while things are on the up. There will be plenty of time to focus on what's underneath once momentum rolls over.

Cheers