Hi, good question. Breakaway gaps in my experience are unlikely...

Hi, good question. Breakaway gaps in my experience are unlikely to be filled if the gap was caused by a material change to the fundementals. Which in this situation is the case. If you recall the announcement on the 27th of May stating the company was moving to consumer development; this by many definitions is a material change to the fundementals of the company- ie derisking its operations a lot.

It the same as saying for example, a company trades at $1 per share and sells 'x' number of product. They make an announcement that they have discovered new operations methodology they can now produce double or '2x' number of product at the same cost. The share price gaps up. Gap here unlikely to be filled as the fundemental value of the company has changed as they can now support the higher SP as theyre likely making double the revenue etc.

Gaps which are created without and news tend to be filled.

But as a caveat... do remember markets don't always follow these rules. These TA rules all have a % chance of playing out, hence helping us align our capital with the amount of risk we forsee. This @Marek78 is the point of Technical Analysis. I worked at an investment bank for a majority of my career- and I can tell you TA has a role to play in decision making when looking at invesments- especially those with a high number of market participants / transactions.

Hope this helped bud.