Exactly right Kinko. This is why some stocks (RMS springs to mind) will fall on good announcements. Its not that the market doesnt like the news, but the chart needs to touch its lower band to keep the chart intact.
A lot of traders are baffled when this happens, when they bet on a good announcement. The announcement comes and goes, yet the share price plummets. They sell frantically, the stock bounces off its lower trend line and then takes off to a new high.
wooshka, page-47
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