From what I see described, the rend is already heading in...

  1. 4,409 Posts.
    From what I see described, the rend is already heading in downward motion. Support breaks - panic sets in, and a big drop.

    Then once market anticipates it has an over reaction,market has anticipated this was the bad news they were waiting for. When in actual fact the stock may have just been declining due to seasonal or other influences. Investors, Day traders and Swing traders jump in to take part of the recovery process as percieve it was oversold.

    With stocks that however have really bad fundamentals eg board, finanicing, etc would not get as keen a market response.

    Another thing to take into consideration is the underlying company's worth from Assetts eg has it been oversold under Assett value?

    ROC - would most likely fit your study, I did not see it mentioned. (note did not have the bounce back so could go i that category) BMN another

    Should this not be in the General Section!
 
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