Think about this perspective: a temporary recovery in share prices after a substantial fall, caused by speculators buying in order to cover their positions. this is the Dead Cat Bounce! China's crackdown on for-profit education companies was a disaster for traders not using a stop loss. In the 52 Week Range TAL Education Group went from 90. 96 to.
Can a dead cat bounce if it falls from a great height?
Derived from the idea that "even a dead cat will bounce if it falls from a great height", the phrase is also popularly applied to any case where a subject experiences a brief resurgence during or following a severe decline. This may also be known as a "sucker rally".
What causes a dead cat bounce?
The causes behind a dead cat bounce are largely the result of these effects. It is often a combination of these effects which result in the dead cat bounce phenomenon. Technical factors, such as a short position from many firms, can help in the formation of a dead cat bounce.
