Here’s Why You Should Pay Attention To The Upper Boundary Of A Gap
Let’s look at the Nasdaq
Composite Index ($COMPX). It gapped down below a trading range.
Although it is recovering now, the lower boundary is a potential resistance
level.
09:40:23
(From TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
JNPR |
buy stop at 25.81 |
challenging gap |
25.61 |
26 |
25.69 |
TK |
So often, the upper boundary of a
gap zone becomes a resistance level. Needless to say, if the stock has enough
fuel, it can take out the boundary. This was what happened with JNPR this
morning. It gapped down at the open and recorded its intraday low immediately.
Shortly after 10:00, JNPR successfully moved out of the gap zone.
10:15:20
Follow up on JNPR (Pt 2)
Feel free to mail me your questions.