Okay, now I've got a bit more time a few words on gaps and why I said earlier, "on an 'ordinary' day I'd have expected this to rocket now".
As we've seen, today's gap was filled.
Yesterday's gap, on the other hand, remains intact. It will act as support...it is a fallacy that gaps are a vacuum that have to be filled, on the contrary.
There are several varieties of gaps, yesterday's I would categorise as a Measuring Gap. (We had our Breakaway Gap on 1/11.)
A Measuring Gap indicates strength and, as in yesterday's move, on moderate volume...slightly more than double the 21 day moving average.
Now the tricky bit. If it is, as I believe, a Measuring Gap (there's an outside chance it's an Exhaustion Gap...but I won't even go there!) then, like a Pennant/Flag, it appears half way up the current trend. So where do we place the start of the trend?
Is it the big move on the 24th? Or further back on 1/11 when we had the Breakaway Gap?
I'll plump for the latter...it's a 'big picture' view. On that day, not only did we see the gap up but also a breach of the 50% Fib level PRECISELY where it was crossed by the long term descending trendline at 124.58p
Our target then is 295p.
I think the target is a bit excessive (and I feel like a hostage to fortune) but that's my best interpretation of the chart, given the market's rather skewed nature at this time of year. Today is a pause I don't think we would have had ordinarily...let's hope it's not the start of a reversal and the re-categorising of my gap to a...I won't even go there!
Most indicators have turned bullish, by the way. And my software generated a buy signal yesterday, with certain caveats.
Good luck,
Martin