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Strategies & Market Trends : Stocks with 'Dead Cat Bounce' potential -- Ignore unavailable to you. Want to Upgrade?


To: ~digs who wrote (2)8/5/2001 7:30:55 PM
From: ~digs  Read Replies (1) | Respond to of 130
 
Big Money reversal play, stock experiences unexpected news

Example: FRNT stockcharts.com[h,a]whclyimy[pc40!c200!d20,2][vc60][iUk34,1,1!La12,26,9!Ll14] Back near the beginning of the year Frontier Airlines was on fire. The weekly chart had gone parabolic, there was no clear pullback support until ~12 dollars. Clues regarding the maturity of its trend can be seen in the 1) high ADX 2) stochastics bouncing off 100% for extended period of time 3) extreme MACD reading.

When FRNT announced a profit warning a few weeks later the stock collapsed hard, due in part to the highly overbought condition of its chart.