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Cresud Inc. Gaps Up on Bullish Interest; CRESY, CALM, ALCO |
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Monday, 02 November 2009 07:56
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(Learning Markets News) -- Cresud Inc. (CRESY - Chart - News - Analysis) gapped up more than 4% today as traders moved into the stock. Gaps occur most frequently when announcements or new information is released during non-market hours from the firm or within the firm's industry.
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Essential Reading for Traders
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| | | | | A gap will show on the stock's chart as a break between the prior closing price and the subsequent open price. Small gaps of 1-2% or less are very common while larger gaps are rare and can be very important bullish indicators.
Cresud Inc. competes for investment capital with Cal-Maine Foods, Inc. (CALM - Chart - News - Analysis) and Alico Inc. (ALCO - Chart - News - Analysis) in the Farm Products industry.
Gaps are important technical signals. Quite often traders will look at the gap as a potential level of support or resistance for prices in the future. That means that if prices start to fall in the future there is a likelihood that the stock will pause at the gap's support level and begin to rise again.
The same thing is true for gaps to the downside acting as a resistance level when prices climb back up again. Technical analysts feel that news, fundamental information and market sentiment can all be seen within price movements and gaps are a good example of the impact of how economic, industry or corporate events can affect a stock's price.
Learning Markets specializes in education for individual investors. You can learn more about gaps and technical analysis through the related links we have included below. You can also learn more about a variety of market, economic and investing topics through the home page or within each of the major tabs across the top of the site.
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