I'm a technical trader for the most part, but this is one of those cases where "fundamentals" drove the price action.
IFL bolted on Tuesday on takeover speculation stoked by the AFR. It then gave back those gains yesterday after the company came out after the market close and denied it had received any takeover approaches. That's it. That's why it gapped down so hard yesterday.
I'm sorry you had this experience - we've all been caught out by a negative news release - but it's important to have at least some understanding of what you're trading, what is driving a rally and what might cause it to blow up.
Basically, buyers on Day 1 were betting that the speculation in the AFR was correct. The company came out and said, nope, nothing doing, and that was that. Rally over. There was nothing in the price action to foreshadow that outcome.
