It depends upon your definition of what constitutes a "gap" is I suppose.
Using an OHLC chart, then I consider when a stock closes at a price but opens at a higher price the next trading day, then that constitutes a gap up in the price.
If the price on that second day drops enough to cover that gap then all is sweet and the gap is closed. It can drop and still recover to finish the day up and that does not affect the situation.
The second day price can do whatever it likes, up, down or sideways, but unless it covers that open gap then the gap is still open.
It may partially close the gap, and then that part of the gap is considered closed, but the remainder of the gap is still open.
I have found it is a 95% certainty that the gap will close at some time even if it is days, weeks or years into the future. That is why I am keen to see them out of the way now.
One exception is what is considered a breakaway gap which does not have to be closed, but they are rare.
I do not consider this latest action to be a breakaway gap.
That could well change if we get great news soon.
It is very possible that I am wrong, very possible, but it has served me well for many years.
Please let me know what you consider a "gap up" to be. I enjoy engaging with you on this subject.
I don't know if my theory is supported by any authority on the subject.
Have a look back through PER's charts, or any company, and you will see what I mean.
My old head hurts after that. LOL
Lockitt
PER Price at posting:
9.6¢ Sentiment: Buy Disclosure: Held
