Gaps in stock prices, including those in Tesla, don’t necessarily have to be filled, though many traders believe that they often eventually do.
Here’s why gap fills aren’t guaranteed but are common:
1. Market Momentum: If the gap is part of strong momentum (like a breakaway gap due to big news), the price may continue moving in that direction without filling.
2. Fundamental Catalysts: News-driven gaps, like earnings announcements or major product releases, can lead to sustained moves in the stock price that resist filling.
3. Technical Patterns: For Tesla, gaps tend to fill in calmer market periods but may remain unfilled longer in high volatility or trend-heavy phases.
Tesla, given its frequent, sharp moves and trading volumes, often sees some gap fills but can also leave gaps unfilled for months or even years, depending on market conditions. If you’re gap trading Tesla, it might help to consider the gap type and the broader market context to assess the likelihood of a fill.
