Pharmaceuticals can take nasty falls if their products fail to pass FDA muster. These falls can provide nice opportunities for swing traders to play the gaps that are left by these sharp moves of price action. Lipocine Inc (LPCN) took a nasty dive on the 8th of May, leaving behind a pretty nice 31% gap that will eventually get filled. Since the drop, LPCN has formed a textbook ascending wedge in it's current longer term bearish downtrend, signaling higher prices in the short term. If this wedge continues to hold through it's formation, the gap will be filled where the top of the wedge and the top of the gap intersect (A). Because the ascending wedge is a bearish continuation in an overall downtrend, the price will eventually fall back down (B). However it is also a good possibility that LPCN will fall out of it's wedge before it even fills the gap completely, as price action on average tends to break out ~60% of the way into the wedge, which is well before the gap fill (A).