which gap to fill?

Hello PAN'ners,

The presence of two gaps on the PNA chart have had me chewing nails this weekend. As shown below there is a gap between 37c and 36.5c formed on 29/06/09 and a gap between 33.5c and 34c formed on 16/07/09.



As I have previously stated, I do not believe gaps should be filled but that is not what matters, what matters is what the majority of the market believes.

Looking at the chart stochastic, we see that it is healthy and not necessarily in the "overbought" area yet(>80%). We have had three up days in a row followed by a flat day on Friday. Thursday and Friday have shown dojis, that is, the stock opening and closing at the same price (35c). Each time the price threatened to fill the lower gap, buyers stepped up and stopped it from falling below 34c.

Question is which gap will PNA fill first? The upper or the lower one? Arguments for PNA share price heading up:
1. Stochastic still bullish
2. POC still up there in the upper 2.30s low 2.40s

Arguments for PNA share price filling the lower gap:

1. The market here and in the US has had five up days in a row. For the love of me, I can't remember the last time we had five green days in a row. Usually at this stage, profit-takers and shorters move in to trash the party. Having said that, there is as yet no fundamental reason why the markets should go down. Earnings reports overseas will not come in till after our market closes on Monday, making trading tomorrow very interesting

2. The two dojis indicating a trend reversal (hopefully a short one)

3. Give me peace of mind and confident in going higher without looking back at the lower gap!

4. F&B mentioned that the price around 35c is a strong resistance from memory. The failure to close above 35c is evidence of this resistance perhaps?

My personal expectations would be for as is usual practice, for PAN in the past few days, to see PNA open high and close low. The past two days were and aberration in that we had a mini-AR between 3:45pm to 4:10pm to rescue the SP from 34c and put it at 35c on close.

If the Dow futures go green tomorrow, followed up with some positive fundamental news and Mx's blessings, we could have an AR.