Good question. I personally love gap up's & down's, as the outcome for tradng in very predictable and profitable. Gaps 101 stats - 92% of gaps are closed within 30 days, with 96% at some point in future, leaving the balance of 4% that never close.
Lets put sgq under the microscope - Could the gap at 6.5-7.5 close. Based on stats, there's a 50-50 chance this will happen at some point - that's 4% balance greater than 30 days is still open and 4% never closes.
Could sgq hit 6.5 cps again? Yes is the answer, however it would take lots of factors for this to occur. To reach a 6.5 cps pricepoint again, sgq would be loathed by investor, need a cr, have had absolutly no exploration success for ages, nickel would have to be out of favour, etc. That unloved point companies reach, is actually the best time to take a position, provided everything checks out. And with many hundreds of listed exploration companies on the asx, there's always an opportunity for great returns awaiting aware investors.
Helmenesh, I carn't see any of the triggers necessary to close that 6.5 gap in the short term occurring (6-9 month's) - The sound footing sqg has developed sees it in good stead for the foreseeable future.
The odds of a 30 cent shareprice occuring again, outway's the 6 cps gap closing by 50:1 imo.
Cheers
Tradealot
SGQ Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
(20min delay)