dead cat bounce


A quick upward advance in the price action following a previous overall downtrend in a bearish market environment.



Temporarily rising, the price action in this instance is likely to continue downward as selling pressure continues to remain in the market. Ultimately, the rise is attributed to profit taking and position realignment before the market returns to selling the asset lower. Conversely, however, in a bullish market, the bounce is likely to continue higher as buyers are likely to keep the momentum climbing higher.