Skip to main content
No. of Recommendations: 0
<Too Many Gaps?>

Earlier I posted:

"[HSAC] gapped up slightly on Friday on a spike in volume. I'm debating whether to grab more before it goes through the clouds and out of sight. I'm a little gun shy about averaging up here after taking a couple sucker punches recently in some other names but this one looks promising."

In considering the decision to buy more HSAC I thought about Rat's warning on stocks that gap up: they frequently come back to fill in the gaps. After a quick trip to Clearstation I realized that HSAC has holes in its chart like swiss cheese. One of the things that's making the qualitative analysis difficult is the amount of noise (i.e., hype) around this stock.

My question is whether I'm reading this chart correctly?

If this thing really is flying on momentum rather than real power it seems to me that HSAC is likely to get whipsawed back to levels ~25% below its current price. In my opinion that's not a good near term trade. Instead it may make more sense to wait and pick this up later after it corrects.

Can any of you TA types give guidance on the idea of a stock "filling in the gaps"? Does the HSAC chart have too many gaps for a near term trade?



HSAC closed 9 Jul 99 @ 47.6875 up 8.5625

</Too Many Gaps?>
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.