Breakaway Gaps
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Stock Of The Day: Floating Island Reversal Pattern In Nebius?
Benzingaยท 2025-08-20 16:50
Group 1 - Nebius Group N.V. (NBIS) shares are experiencing a downward trend, potentially filling a gap to the downside, which may indicate a new downtrend forming [1] - The concept of 'gaps' in stock trading is explained, where aggressive buying or selling can lead to price openings different from closing prices, creating blank spaces on charts [3] - The distinction between 'smart money' and 'dumb money' is highlighted, with 'smart money' being aggressive at the beginning of trends and 'dumb money' at the end, leading to different types of gaps [4] Group 2 - The formation of an 'exhaustion gap' is discussed, which occurs when frustrated buyers enter the market aggressively at the end of an uptrend, causing a significant price movement [5] - The potential formation of a classic floating island pattern is noted, which includes an exhaustion gap, consolidation, and a breakaway gap, indicating a possible new downtrend for Nebius [6]