News needs to be so material that it creates a breakaway gap. Such as a aquisition or major funding, these are the calibre of news that create a gap that often doesnt get filled, creating a break away. Buyers are stepping in to geniunly re-rate the company because it is now undervalued.
I assume your talking about the gap in CR8, in this case the news was already known to the market (AMP getting close) so its not significant enough news to create the breakaway gap because some of the deal may have already been priced in, unfortunatly and for no logical reason at all it needs to fill now and hopefully recover its ground.
http://www.investopedia.com/university/charts/charts8.asp
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News needs to be so material that it creates a breakaway gap....
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