Gap ups can create powerful moves.

What caused the gap up?

A big gap up will likely cause profit taking.

Unless the news has a significant impact on the future business.

Game changing news = game changing price action.

The $ASAN gap on the above chart +43% is from their latest earnings release:

“Asana (ASAN) shares are up today due to the company reporting impressive third-quarter financial results. Here are some key highlights:

• Revenue: $183.9 million, a 10% increase year-over-year.
• AI Studio Launch: Asana introduced its new AI Studio platform, which allows users to build AI workflows without needing to write code.
• Gross Profit Margin: 89%, which is significantly higher than expected.
• EPS Guidance: Asana provided optimistic earnings per share (EPS) guidance for the next quarter and the full year, surpassing analysts’ expectations.

These positive results and the launch of AI Studio have boosted investor confidence, leading to the rise in share price.”

Lets see how this plays out.

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