(you should hopefully be able to click on the image for a larger view)
What I find interesting is that the gap up was filled by only a 1 cent differential. This is because gaps tend to act as support and resistance. Once the gap was filled, it was all systems go for the gold bulls.
I have experienced this exact pattern before in October 2006 when I was trading Agnico Eagle Mines stock. The similarities between what happened above and what is shown below is uncanny:
Keep in mind that the above chart is a 60 minute chart again. This price action took place in the fall of 2006. Although not an island, please notice how the stock gaped up, filled the gap by a 1 cent differential, and then exploded higher. This is exactly what happened in the first chart posted.
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