I think the gaps get 'filled' purely from a psychological drive to do so.
I.e. we all know a gap exists at 85 cents and as the share price progressively goes lower, people "expect" that the gap will get filled. Therefore they sell their stock in order to cut their losses. This in turn continues to push the price lower and more people again sell.
Then when the gap is filled, from a technical analysis perspective a condition has been met that signals a possibility for a reversal. So people who have been waiting on the sidelines for the condition to be met, may start to buy in again as they think that a bottom (or near bottom) has been reached.
I think fundamentals drive price through announcements etc and charts drive price from a pattern recognition perspective.
Anyway that's just my personal opinion ;)
What's anyone else think?
RFE Price at posting:
89.0¢ Sentiment: LT Buy Disclosure: Held
