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The term "dead cat bounce" refers to a circumstance where a security enjoys a brief upsurge during a generally negative trend.

The name comes from the expression that even a dead cat would bounce if dropped.

 After a significant correction or downward trend, there is a short-term price increase.

A dead cat bounce happens when the price of a stock increases swiftly before falling.

This often occurs when the stock or asset lacks any actual underlying strength.

It is used to describe a stock market trend that cannot continue and will eventually fail.

The greatest worry with the dead cat bounce is that it cannot be accurately identified.

It may be mistaken for a broad trend reversal in its early stages. 

But eventually, the price stagnates and the downward trend persists.

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What does 'Dead Cat Bounce’ signify in a stock market?

A dead cat bounce is used to describe a situation when the price of a stock or other asset increases swiftly before falling just as quickly.

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What does 'Dead Cat Bounce’ signify in a stock market?

A dead cat bounce is used to describe a situation when the price of a stock or other asset increases swiftly before falling just as quickly.

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