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Breakout above the gap. Filling of the gap super confirmed.

BTCE:LTCUSD   Litecoin / Dollar
181 0 0
Observations only of the behavior seen following the gap.

Just before the break to the upside, (off the top of the gap), (which may confirm that this is not an exhaustion gap), with some saying it is a "bear rally" which portends movement that will facilitate a strong correction desired at the top of a B reversal to the larger correction, we can see trading on unusually low volume encourages those who wish to buy to chase the ask up, this sparks a rally with some volume that is mixed in character.

Before the break up, we see trading right along the top of the gap which is then broken out of to the upside with a larger green candle.

We might see two cups that make up the entire formation, nested, the rims of which are indicated by the black, darker lines at the top. The inner, or smaller cup with no natural retrace the right rim of which rallies on to form the right rim of the larger cup which refuses to retrace at this time.

If we turn our heads upside down, we might see an inverted head and shoulders with the "Gaps Trendline" passing neatly through the right neckline, the left rim of the inner cup describing the left neckline of this inverted head and shoulders.

Gaps usually retrace to below the gap after they fill once, and trade up through the gap once more to establish a super confirmation, that the gap has been filled, and confidence to trade up through the gap once again, has been put in place.

This gap is not in a parabolic rally on exceptional news, exactly the opposite, it lives within what many think is a top to the second reversal of the larger correction from what are only described as wild, speculative, parabolic highs.

Extreme caution is warranted here long, :-), but this is certainly something interesting and rich with formation to observe.
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