A stock closed for trading on Friday at $43.65 per share. Earnings were released on Monday morning, before the open. The earnings and guidance were wildly bullish and the stock opened at $49.40 on Monday. What is this price action called?

Explanations

This is known as gap up. When a security opens in the next trading session at a higher price than the previous close, it creates a price gap on the charts. This is called a gap up. If the open was lower than the previous close, it is known as a gap down