There are two types of Gaps, for more Google search
1. Breakaway Gap
2. Exhaustion Gap
ABB is opening with Breakaway Gap, (see Graph) and this is due to early demand from foreign buyers, as well as Index related.
This confirmation must have heavier volume, compare to average daily volume.
Breakaway UP GAP occurs, when there is more demand than supply at the opening, which is more than the price Stock’s previous day closing.
Sudden demand sometimes is temporary and other times smart money knows, but the news is not public. Either way the stock has a potential of moving 2.50 to 5%. Stock generally consolidates to fill the gap. Professional traders provide the stock after the gap, and then go back and buy when weaker holders sell on the down side, fearing stock is topping.
After 30 days stocks are generally higher than the gap opening. This is generally is a Bullish Signal