During my last post, I mentioned about Wilmar gap open at 3.58. I have people asking me what I meant by that. You have also notice some stock forums, some contributed did mention about gap. But different people has different way of interpreting.
Let me explain here. From my own interpretation of meaning "gap", when it opens at certain price at a higher level then the previous closing price, it means that there are high volume pre-trading that willing to lock in at a high price in order to anticipate the stock will hit higher.
Certainly, Wilmar did go as high as 3.72 the next following day, and we will see a different pattern there after. Why did I say that? Because BBs that locked in during probable price of 3.58 on the gap, or price like 3.59,3.60,3.62 with high volume could have probably locked in some profit during the rally to 3.72.
Yesterday it closed at 3.58. So is that means that it is good to buy again to ride on the mini wave? That we will see again next week. So, from here.. I would also like to say that stocks characteristics are different from one another day even during the trading time to spot the signals.
Star-Trader
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