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:
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