Smart money which can move prices at will are seen using this panic shakeout tactic to get rid of weak hands.
There are many stocks which are showing this pattern.
Following are few points that I have observed in this strategy are:
1. Stock price is near all time high level.
2. There is result or news coming at the same time.
3. Dramatic drop of price is seen till near 50ema.
4. In small and steady move stock start moving up and makes a new lifetime high with big candle or a gap.
So unless you have deep conviction on the company it will become difficult to hold through shock.
I am posting few charts here
In case you find such chart do add them in comments.
There are many stocks which are showing this pattern.
Following are few points that I have observed in this strategy are:
1. Stock price is near all time high level.
2. There is result or news coming at the same time.
3. Dramatic drop of price is seen till near 50ema.
4. In small and steady move stock start moving up and makes a new lifetime high with big candle or a gap.
So unless you have deep conviction on the company it will become difficult to hold through shock.
I am posting few charts here
In case you find such chart do add them in comments.