1. On 13 Aug, a runaway gap up ($1.30 - $1.35) with a white Marubozo candlestick is created. It closed at $1.46 with 680 mil shares transacted. The runaway gap is triggered by excellent quarterly result announced on 12 Aug.
  2. On 16 Aug, another gap up ($1.46 - $1.50) is created. A white candlestick is created with 270 mil shares transacted - confirmation of bullish.
  3. On 17 Aug, a dark cloud cover (bearish) is created with 330 mil shares transacted. However, the sell down is triggered by about half of the total transaction (165 mil shares).
  4. On 18 Aug, a spinning top is created with 150 mil shares transacted. Spinning top signals indecision. No confirmation of bearish.
  5. On 19 Aug, a engulfing pattern (bearish) is created with 81 mil shares transacted.
  6. On 20 Aug, a doji is created with 79 mil shares transacted. Doji signals indecision. No confirmation of bearish. The gap at $1.46 - $1.50 is tested, but not closed.
  7. From 17-20 Aug, the bearish pattern is done with lower volume.
  8. On 23 Aug, an inverted white candle is created with 120 mil shares transacted. No confirmation of bearish.
  9. From 23-27 Aug, higher low is created with average volume. 2 spinning tops on 27 and 28 Aug again signal indecision.
Resistance: $1.60, $1.68
Support: $1.50, $1.46
Comment: There is an old saying that the market abhors a vacuum and all gaps will be filled. While this may have some merit for common and exhaustion gaps, holding positions waiting for breakout or runaway gaps to be filled can be devastating to your portfolio. Personally, I was surprised that the gap at $1.46 - $1.50 is not closed on 20 and 23 Aug.


Alvis said... @ August 31, 2010 at 8:34 PM

Price went above $1.60 for the past 2 days, and closed at a new high at $1.69 with average volume.. not a strong upward movement.. need to monitor the volume for the next few days.

genesis said... @ September 28, 2010 at 4:16 PM

a Hammer is seen on daily chart on 20/09 with reasonable volume. might indicate a correction. based on fibonanci retracement, do you think there might be a chance to 50% correction?

previous movement from 0.385 to 1.30 bounced off the 50% retracement @ 0.86 to reach new high of 2.18. so i believe there is a chance of this movement getting a 50% retracement.

expected bounce off 1.52-1.58

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