I quote from John Murphy's book "Technical Analysis of the Financial Markets"

"Several myths exist concerning the interpretation of gaps, One of the maxims often heard is that Gaps are always filled. This is simply not true" Some should and others shouldn't"

"Gaps have different forecasting implications depending on which types and where they occur"

There are three types of gaps. The breakaway, runaway and exhaustion.

"The breakaway usually occurs at the completion of an important price pattern and usually signals the start of A SIGNIFICANT MARKET MOVE. Major breakouts from topping or basing areas are breeding grounds for this type of gap. The breaking of a major trendline may also see a breakaway gap. Normally breakaway gaps occur on heavy volume, more often than not breakaway gaps are NOT filled. As a rule the heavier the volume after such a gap appears, the less likely it is to be filled.

The other two types of gaps are not relevant to KXL at the moment so I won't digress.

The problem is in interpretation on the gap yesterday in KXL. If it was indeed a breakaway gap then it is very positive and we may be in for a good run. The only doubt in my mind is that the gap did not jump out of a trading pattern, or did it? The volume was not that heavy either. Anyway whatever the interpretation of this gap, may be sentiment is moving in the right direction for KXL stimulated by National Bank Financial and Van Presentation , Cedar's post was great (25+ ticks) This certainly dispelled a lot of doubts in my mind at least. The vibes suggest there is an air of optimism building up (just my opinion for what it's worth!)

Looking forward to the coming week, btw slow stochastics have turned positive and moving up, another good sign! I have enjoyed the very informative posts, the kxl forum is the first thing I look at when I switch on computer!