Yeah, good job........you all pretty much got it. Here are the...

Yeah, good job........you all pretty much got it.
Here are the few points I wanted to make.......

A gap should be considered in a similar way to a price pivot, and as such is always an important level on a chart to consider.
On that chart below, price had previously found support at 28.5 cents per share (cps), which is why the horizontal line was drawn.
So when price came down to that line with a wide spread (and yes that bar itself was actually a breakdown bar) and then price gapped over the line at 28.5cps, it showed that firstly) the professional traders KNEW that potential support line was there (which in itself confirms the placement of the line), and secondly) rather than going through the 'normal' process of selling to the buyers until they are overwhelmed, and then take price lower.  They chose to gap over the potential support for whatever reason (we can guess certain different scenarios here, but cannot actually know what or why something is going on, especially right at the time it happens - so we watch what the response is before doing anything rash).  Since then price has traded within the spread or range of that bar, so there was no further downside follow through  after the gap lower (which was also interesting).
And on Wednesday, an announcement was released which took price back above 28.5cps--
--My comment on that was to suggest that previous support would likely become resistance of some sort - this happens because some holders who previously did, or would have, or did, buy around that level (expecting support to come in again), found that price gapped lower and failed to hold, and that they were themselves left in a losing position for a period. Many of these holder usually continue to hold (rather than take a loss), and would of course then sell into any rally which reached up to their entry price, so that they can exit at breakeven. this is why support changes to resistance when price breaks down.  And the mirror image for the same reasons are true when price rises, and resistance becomes potential support when crossed.