GERN and gaps

Geron is yet another biotech, with a lot of IP in stem cells.

Recently, it made a deal with Merck that seems really good. A fair
amount of funding to Geron, and Merck will pick up the costs of
clinical development related to Geron's attempts to target telomerase
[which is an attempt to retard cancers].

Half of the initial stock price appreciation has faded.

I have a question for TA people who believe those silly rules about
"filling gaps". Do you really expect the price to continue to drop to
the high of 8.91 from 7/13? The low on Friday was 9.53. Does the
high of 9.85 on 1/19 have any relevance? How far back does one go
when determining a "gap"?