Well it could, but you are clutching at straws from a technical...

Well it could, but you are clutching at straws from a technical point of view.


Typically gaps form on open of the following days trading and mean less and less as time progresses. Gaps form during over exuberant buying, perhaps on a good ann and if they are going to close they close the same day as people realise they have overshot and tend to sell it back down into it's range. The further we are from that gap (time wise) the more likely this is just normal SP movement when it gets filled, although there's no doubt buyers will wait at the bottom of previous gaps thinking it's a buy point.

This is where it becomes more of a psychological game rather than a technical one. If I was planning on buying at the base of a gap I would probably put a buy in just over it to make sure it gets filled (unless for other reasons I expected it to spear down below it). You might not want to leave the gap entirely untouched but in this case a pip or two either way means nothing, other than the fact that all things being equal the SP should return to it's upward trend that was present when the gap formed in the first place.