A liquidating dividend occurs

01 Jul

Increased buying interest happens all of a sudden, and the price gaps above the previous day's close.The area near the top of the congestion area is usually resistance when approached from below.Likewise, the area near the bottom of the congestion area is support when approached from above.Up and down gaps can form on daily, weekly or monthly charts, and are considered significant when accompanied with higher than average volume.Gaps appear more frequently on daily charts, where every day is an opportunity to create an opening gap.

Gaps on weekly or monthly charts are fairly rare: the gap would have to occur between Friday's close and Monday's open for weekly charts, and between the last day of the month's close and the first day of the next month's open for monthly charts.

A price chart with gaps almost every day is typical for very thinly-traded securities and should be avoided.