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Fan Yang

Gap (GPS) to Face Key Resistance Around 30.50

Gap $GPS has been trading sideways since 2016 and price is rallying towards the range resistance.

Gap Daily Chart

(click to enlarge)

Range Resistance:
- As we can see on the daily chart, price has been sideways, holding under the 3.0-50 area for the most part. 
- Range support has been around 21.50-22, although there was a brief dip to 17.00 area. But the common support is around 21.50-22. 
- Note that the most recent swing from around range resistance did NOT come back down to test the range support.
- This is a small clue that price might be gearing up to break above the range resistance.
- Also, this 26 support area is important. It is the middle of the range. If price starts to hold above 26, it means the pressure is on the upside, on the resistance factors around 30.50.
- We should also anticipate support around 28. If price retreats to 28, it would have "closed the gap" that started this week. A bullish market should see price rebound after closing this gap.
Falling Resistance, Target Above Resistance:
- Looking at the weekly chart, we can see that the 30.50 area also involves a falling resistance.
- Furthermore, the 200-week SMA is around 31. 
- The ability to push through these resistance factors opens up at least the 35.45-36 area, which is support of a previous price top. 

GPS Weekly Chart

(click to enlarge)