I am very elementary in TA compared to some of you guys. As far as I could tell, there is very thin volume between 25 and 33, which only means to me there was very little resistance in that range. If you are talking about gap, do you mean the gap left in the 'gap-up', if so, I don't see any need to fill that. The stock finds good support at $36+ for the last 6 months and $38+ for the last two trading days. imho.
Gibbon like yourself my TA skills are just developing however in every case I have ever seen the gap always gets filled. I'm not in now took my 10% in <2 hours tuesday and have been waiting to get back in.
Which one of all those gaps, jgr242? Actually, too many of them, don't you think? Check the link as follows to clear your developing TA skills from the dust.
I've been reading some posts on this board that refer to the need for the gaps to be filled between $32.50 and $34.70. I think everyone should consider the fact that AH on Wednesday Mags traded over $35.00 per share, I know because I sold mine at $34.99 and bought it back a few minutes later at $33. so there is no gap. Now, I don't know because I didn't own it then (maybe someone else can comment on that) but I suspect that other gaps at lower prices were also filled AH and should be considered as valid. A trade is a trade whether before, during or after hours. IMO
the gap they're talking about is the one between 4/7 and 4/8. The high on 4/7 was 32.5 and the low on 4/8 was 34.7. According to gap theory all gaps are eventually filled. But gap theory doesn't specify in what time period they must be filled. What these people are ignoring though is that the gap occurred on huge, and I mean HUGE, volume. This is usually an indication of big money buying, wich also means the stock will most likely have support at the gap price, i.e. 34.7. I think the people looking for the gap to be filled are going to be very surprised next week. It appears to me that this board is populated with many novice traders. Let me point out something for their benefit. You will frequently hear the expressiona about what is or is not priced into the stock. When the big money makes a move, that is when all of the expectations they have for the company are being factored into the price. Right now the premium for MAGS is being priced in, meaning that the big money is placing their bets about how well Pipeguard will be received. It is obvious to anyone that the valuations are becoming inflated as well, so what, big deal? When the company reports earnings in 6 mo or a year and disappoints, then the premium will be taken out; the stock will be dumped. The big money is not, NOT, going to turn around and pull the premium out next week, simply because the valuations are high. As I said, this board is filled with novices and amateurs IMO. Keep studying and watching the market to see what I mean.
Thanks for taking the time to educate me and others. I think, like you said, while the gap theory may have some validity, it cannot be true all the time. There is no mechanisms or rules that require it, and in some instances, such as the one you suggested, I can see it being skipped.