123Tom's TA study group

[Citrati]

At this point in time it is simply a gap and a small one at that.
An Island has a gap (up or down) then a sideways pattern of a couple of candles and then an opposite direction gap creating the look of an Island or disconnected aspect that gives the illusion of floating.
Without knowing why it had the move and then todays gap (news can trump charts) then there are upward targets and downward targets.
UP.
The 3yr weekly is at .347 which could provide LT resistance. .032 is the previous weekly low before the final bottom and price stopped today at .314. On a weekly basis this may take some working at to close above. (fundamental dd may provide a reason for it to keep going.....your job to research)
Plenty of room on the weekly indicators and not nearly overbought.
Adding the daily 8month.
Indicators are overbought especially rsi and adx and stoch though adx blackline shows a strengthening trend. The gap to fill is .284-.35 of which it reached .314 today. Adding the daily 200day at .34 and the daily shows potential for strong resistance here as well.
Just depends on ones goals, gambler mentality and entry price whether to take some off the table while it breaks resistance or retraces.
Down.
This all depends on why it ran, what news will support/continue the move or no more news for a while.
The total move was .14-.31 or 17cents. The breakout was 3 leaps from .18 so lets say 13cents. Half is 6 1/2. So a 50% retrace from .31 of 6 1/2 cents gives .245. The top of the upper bb is .25 and the 4ema at .24. Seems very reasonable to test at least there (even if a quick dip and go) especially with price so far outside the upper band. The 8ema is another likely retrace price and that is at .22
It built quite a nice base above the 50day .17. Since the momentum started from there that would be giving up the entire move so one needs to weigh that risk.

Conclusion: if it becomes and island reversal then price is going down. Best scenario is there is big news and it becomes a runaway gap.
Given the potential for strong resistance (without bringing more power) the risk is high based solely on TA that it can break resistance.

Just my guess and opinion and not advice... Good luck