Another Gap Up on Bullish News????Pre-market pride for OGI indicates that the stock price will significantly than yesterday's close of $4.05.
Typically, Gap Ups are for selling--traders take profits. In most cases the Gap is filled, so the stock price falls back to yesterday's close.
But not always, there was no Gap Fill yesterday--as OGI moved higher than the opening. of $3.62...
What happened is this: OGI "Gapped UP"...Quickly, traders took profits--selling their shares, and the price dropped. But then investors bought the dip, and the price moved higher than the initial gap up of $3.62
How to trade a Gap Up???? Not easy..Use a candlestick chart. Look at the 5 minute and 15 minute time frames. Watch to see if the stock Gaps up, and then investors take profits, which means the price begins to decline. If the stock is still falling after 5, 10 minutes, the stock price will likely continue to decline and fill the Gap...
However, if OGI gaps up, then drops quickly, traders buy the dip, and the stock price moves higher than the original gap up, there is a strong possibility that the share price will rise....
Always check the RSI-- OGI is trading at the Overbought leve of 78 on the hourly time frame.
And, there will be a pullback later today or likely tomorrow. Stocks often pullback after a runup anywhere from 10 to 50%, and then resume their uptrend....