the final 30 minutes, page-40

re: why this gap will be filled. People talk about gaps...but do people ever discuss what are gaps and what are the significance of them and why they are filled and the mechanics of them.

Gaps are caused by movements in a stock price where thee is no buying and selling interest. As a consequence there is no action to go by at that price..... meaning there is no support or resistance of buyers and sellers at those price levels.


Peole talk about support at 20 where bounces have occurred or resistance at a price.... usually where a supply of shares has entered a market to cap any further price rise...the market says.."this is it"..

Gaps are filled quickly because there is no reference point..its blind territory.

Gaps dont necessarily need to be filled if there has been a fundemental change in a company's position.

What the market has to determine is whether scuh a change warrants a fall...or if profit takers selling will be met by participants revaluing the company's worth.