Investopedia explains Bull Trap
A bull trap often causes some investors to buy the stock, but because the stock continues to decline after the initial signal, those who bought in are "trapped" in a bad investment.
STI has retraced 3% for the past 2 days and Europe is still declining on the fear of Greece bailout. Many counters including the index have declined below their support level (2957 STI). STI further reacted to the US when Dow gave away 200 points in the early hours of trading but rebounded in the afternoon 2 - 3pm due to Shanghai's positive performance.. Waves of buying occured during this period and finally surrendered at the end of the day.. Are you bull-trapped?
The boy who cried wolf for the third time is real for now.
Stay away as counters are testing their critical support levels using TA.. When dividends and earnings reports are due to over in May, what's next? Buy or short? When?
Will be updating soon.
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