what about gap on 14-15 july last year?, page-6

22 February i asked this question:
`What about gap on 14-15 July last year?
May it be closed?`

5hareholder answered:

`You, my friend, are dreaming.

Firstly for fundamental reasons..

The top of that gap is 5.4cents, and if the stock traded at that price, the company would have a fully diluted market cap under $200M. Think about that figure and compare it to what the company is developing at the moment. It just won't happen.

Secondly for technical reasons...

Some gaps are left untouched. That gap up from 4.4c to 5.4c is best described as a breakaway gap.

http://www.investopedia.com/terms/b/breakawaygap.asp

By all means, put a buy order in at the bottom of the gap if you want; but you will get filled :)`

My next post 22.02,2011:
`Thanks 5hareholder
I will put at 5.4
This share moving non stop up from 30 June last year,
it cannot last forever,
I think for the next few months will be correction.
I like yours charts`

Next post from 5hareholder:
`For your information, the stock has not been moving "non stop up" since June last year. The uptrend has been gradual, with many corrections along the way. Currently we are at the very rock bottom of the trend channel, and are shaping up for another up-leg. 5.4cents is completely out of the equation`

My next post:
`Thank you 5hareholder/
Unfortunately i`m not as strong in TA as you, but I`d like to share my primitive calculations.
As a long term holder I usually use weekly graphs with `the end of the day ` prices.
According to my graph the price moved from 3.7 on 2 July to 8.8c on 21 of January. I see this as the 1st leg of the 1st wave.

8.8-3.7=5.1c

5.1 x 0.32 =1.6
8.8 - 1.6 = 7.2c this is the first resistance level, it is broken now.

5.1 x 50% = 2.65
8.8 - 2.65 = 6.15 this is 2nd resistance level

5.1 x 0.68 = around 3.5c
8.8 - 3.5c = 5.3c this is the 3rd lvel of resistance`

My point is:
If SP 5.0c will be broken - it will close The Gap at 4.4c.

P.S: I did not buy at 5.4c.