Gaps will be filled

I don’t like the way some asset prices are behaving.

Some are not constructive.

I can see gaps between the highest price of a given day and the lows in subsequent days. This ‘gap up’ is eventually closed as the price makes its way ‘back’ lower to ‘fill’ it.

There is much backing and filling to do.

Below is an example of the Russell 2000 Index.

I don’t like it when individual stocks do it, let alone indices.

Identifying this occurrence helps me qualify whether I ‘rent’ or ‘own’ the asset or security, while also assisting with my next price entry.

November 29, 2023

by Rob Zdravevski

rob@karriasset.com.au