The Gap Fill play starring Spectrum Pharma

The Gap Fill trade set up can be both on an upside move as well as after a downside move. This particular play involves setting some price alerts after a stock has gapped up – or down – and then being patient for price to attack one of the levels.

I had been monitoring one such trade setup in $SPPI — here is a current Daily chart:

SPPI_gap_fill

As you can see in the chart above, the RSI had been drifting up as price drifted up towards the Green resistance line (the area where the Gap Fill starts). A rather clean set up especially after price broke up through the declining 50 SMA.

The 200 SMA is the 1st target with $11.75 being the Gap Fill target on this trade.

 

SMA = simple moving average

 

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