I will test that gap up/down theory on the oil bull etf HOU.

It is a pretty clear example if anyone cares to watch along.

Pull up a 5 day intraday chart to see the gap down in stages.

5.66 is key historical support, 5.95 (todays high after a significant gap down) is resistance.

A trade above 5.95 would trigger a rally, 5.66 break signals more blood to come.

I like the odds of buying at 5.70 with a 5.65 mental stop..

The HOU (bullish oil ) or HNU (bullish nat gas) are very good charts to learn TA on, so watch along if you are interested.

GS40