Alex_Quiroga

Resistance breakout with a Gap

Long
NASDAQ:DAVE   Dave Inc
Gaps are very relevant in stock charts and technical analysis in general, this is called runaway gap and it is accompanied with a high volume . And this happen in a resistance area .
because of that the price broke a key resistance level around 6.00 and now is making a pullback testing the past resistance area that now is a new support.
Other important things here are the topping tails around the 5.80 level who show who the price was rejected in this area and that the bulls are now in control
Is more easy to recognize watching the chart only that I giving explanations of what happened
I only draw a line for identify the resistance with a circle for signaled the gap and a arrow to highlight the volume .
My intention is that the person who reads my idea immediately recognize the new course that the price is taking without trying to convince him with the use of a lot of technical glibness
Famous Dave's of America is a Consumer Services Company is Restaurant
I do not make research about the companies, I only identified reliable patterns and shared in the act
I do not know how to do financial modeling and forecasting financial this is the job of other people in a fund I do respect the decision of those who are above me because many ideas are good from the technical point of view but they do not match with the fundamentals of finance. And people in this business need more than a gap for buy a stock
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