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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (2805)	12/21/2004 11:56:42 PM
From: Walkingshadow	Read Replies (1) \| Respond to of 8752

The top of the upside gap that GERN is now in is of some concern. But I don't think it is that much of a problem. Look carefully at the volume. 139.142.147.218 You will see that at the bottom of that gap is a big volume candle that is about the same size as the upside black candle. That signifies strong supportive volume, and contributed significantly to the fact that GERN did now trade down significantly from the bottom of that gap, but instead went more or less sideways. In other words, the downhill slide was stopped in its tracks by strong buying pressure (supportive volume). Also, there is a huge white volume-heavy candle about a week before the gap down. When you sum all that together with the even larger volume spike today with that big gap up, together they dwarf the upside resistive volume. This makes it very likely that the upside gap will fill, and GERN will overcome that gap resistance. That gap was partially filled today, the only thing left is the resistance at the top of that gap. That may require a bit of consolidation first, as you suggested earlier. So to me, the volume patterns strongly suggest GERN will successfully overcome that gap resistance. I know you tend to simplify the charts and dial out the volume and some of the indicators, and I think that is a good idea. But in selected cases, I think it helps to look at some of these other things, including volume, since they can sometimes significantly clarify things. Supportive/resistive volume patterns in general I think are sometimes underappreciated. Like BBs, they can at times provide decisive information. IMHO, volume patterns cannot be used in isolation, but can sometimes nicely complement the chart/technicals. T