Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 213.29

0.0%

Jan 2 9:30 AM EST

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To: Brian Pastor who wrote (7353)	7/25/1997 12:17:00 PM
From: Chi-X	of 61433

Brain, "filling the gap" means that when a stock pop up (or down) several points from the previous day's close, it is expected it to revisit that original price either that day or in weeks to come. Sometimes the gap is only partially filled (like in this case) and then continues higher (breakaway gap where ASND ran to $56 3/4 before falling). Look on the chart. You will see a gap. When it is filled, that means the stock drops at or below the area where the gap is. Theory behind this: There are ZERO recent buyers in this gap. That means there is no support in this area. No support means that the stock will rapidly fall in this gap zone. Unfilled gaps make for poor foundations for future upward movements. However, ASND has crossed this area before several times in the past several months which is why there is probably support in this area so that gap theory may not apply here. Technical Analysis is not a science and relies on interpretation. It cannot predict the future, just trends. Like buying stocks on fundamentals alone, it is not always correct. But it serves me fine. Cheers, Chi-X has Spoken! CEO Chi International members.aol.com

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