Email of the day (3)
Comment of the Day

October 28 2010

Commentary by Eoin Treacy

Email of the day (3)

on the reason for the gap in H&M's chart:
"When you look at the Hennes & Mauritz (HMB) chart, it took a nose dive on 29 Sept. Why doesn't the red candlestick stretch up to the blue of the previous day?"

Eoin Treacy's view Thank you for this email which others may be interested in. According to this article from Bloomberg H&M missed their earning estimate so that market gapped lower. Most days the market will open reasonably close to where it closed. However, when events occur outside of normal trading hours that have a material impact on prices they can open a significant distance from where they closed the day before as was the case with H&M.

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