Loading ...Breakaway Gaps
From Investopedia:
“Breakaway gaps don’t tend to fill, or at least not for a long time. Instead, the price tends to run in the same direction as the breakway for some time after. The times when breakaway gaps do fill, the breakout direction usually prevails. The price may move back to where the gap started, fooling traders into thinking the gap was a false breakout, but then the price usually keeps moving in the breakaway direction.”
I don’t know whether a chart expert would verify yesterday’s GDX gap as a “breakaway gap”, but volume sure was pretty heavy.
Thanks Jim. It looks like a breakaway gap to me. HUI was somewhat less convincing. Silver may lag for a year or two like it did in the early 2000’s, allowing GSR to continue rising. In a prolonged bull market, gaps can be left unfilled for many years.
Thanks to you NS for all of your charts. I just wanted to clarify the gap discussion because **if** this is a breakaway gap on the GDX, filling the gap may not be necessary even in the intermediate future. Of course, if Pedro is right (and I’m beginning to respect his/her opinions), look out below.
Pollyanna says its a breakaway gap !
🙂
Now you did it Fully…you just put the kibosh on this move with that Polyanna stuff. Down we go.