Anavex Life Sciences Corp (AVXL)

[Gator328]

Gaps are one of the most overused TA terms. The actual meaning of the term is when a stock goes up or down a significant amount almost overnight. To see an example of this, one only has to look at any biotech that gets FDA approval or gets rejected.

People refer to long periods of stalemate followed by quick stock price as a gap, but that's not accurate. With AVXL, it was trading in the 2s for months and now it's slowly going up. That's not a gap -- though it does create new levels of support that may act as a weight to push the price back toward the 50/200 MAs.

A true gap would be if Anavex opened tomorrow at $8. Getting to $8 over a period of a month or even a week may result in selling pressure but it wouldn't;t be a gap n trap.