TSP Talk Blog

I often mention open gaps in my commentary and once in a while I get a question about them.

While screening some stocks this morning I found a couple of good examples of gaps on the chart of Sears Holdings (SHLD).

Like a magnet, open gaps are serious potential targets to be filled. And once they do get filled, that can be an area of strong resistance like we saw here in late October (or support depending on the direction of the open gap.)



I was considering buying Sears here as a bottom fishing expedition, but I would have to see it trade above that gap first, and probably close above it for 3 days.