TA

Now that we are at a pivotal moment in the company's history and it looks like the price is finally breaking out, I thought a new thread to discuss technicals might be in order. I don't usually get too much into technical analysis, being a value investor, but I do trade occasionally and I am interested to gain more insight. One question I have is about the theory of the 'gap'. I hear people talking about this often, but I am not quite sure what exactly they mean when they say 'the gap needs to be filled'. Obviously, if the price keeps going up, the gap will naturally be 'filled', but do they mean to imply that the price action will exhibit some special behaviour around this region, just because there was a gap? The gap for PEN is between $1.52 and $1.64, and we will hit this region soon. Do the gap theorists think because there is a gap here that they expect the price to rise quickly through this region? Or will there be resistance at the lower (and upper?) levels? Why would a trader or algorithm attach special attention to this region? Perhaps Tomasz can comment?

I also note there seems to be some resistance now around $1.40, corresponding to the closing price during the plunge day of Nov. 15.