Last time I saw this Gap up this way before a US holiday we took off - I dont feel the same way this time. Reached a high at 50% fib - and reversed, perhaps took some weak short positions out at stops for those holding over the weekend - Either way when price is bid up over the weekend into a gap, it is usually safe to fade the gap going into the opening. Daily is down on strong MACD with weak stochastic cross to gap up to 50% of down move(fade weak stochastic in direction of strong MACD at fib resistance) - perfect shorting scenario with break even set at close of gap and partials looked for at fib extensions - I would say 61.8 is fair extension for first tp looking to hit 1.618.
At the same time, this last move down could have been a large correction of the previous thrusting move north in which case, if the GAP closes we are at breakeven looking for more profit potential, however if we come back up to a 1600 tick close above this opening 1600 tick high, we can look for a further extension upwards to 61.8 extension as this high has already met the 38.2 extension. As long as the Gap closes, we should be in good shape, if not it is a minimum loss.
Just an Opinion.
I took so long to write this that the Gap is just about closed -:
Man who scratches ass should not bite fingernails
