What is a common gap?
A common gap is a price gap on a chart that is filled (retraced) within a few trading days.

In this case, JBLU (Jet Blue Airways) opened with a small gap on March 11, 2009. The price met resistance @ the 20 period EMA and began to pullback. The retracement could have been anticipated as the gap would be filled more times than not. A pullback to the $3.45-$3.50 level would have filled the common gap. For those who were looking for a good entry point after a pullback, this was it. An easy $.50 per share (14% in this case) could have been scalped from the market. As for the future of JBLU, watch the 20 EMA area for resistance, or a breakout…

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