Ascent Industries Corp. (CSE: ASNT)
Ascent is in quite the predicament right now. They have recently failed Health Canada’s review and have been suspended. The prices of the stock as you can see on the chart have dropped in reaction to this negative news. The company has come back with statements to their shareholders that they are certain that the suspension will be lifted as they have been granted an extension at this time of writing this. As an investor, you obviously want a company you are investing in to have all of its ducks in a row. Sometimes hiccups happen. We are not going to speculate if this will be successfully resolved or not, we will leave that task to you. Today we will talk about a chart pattern that you may encounter from time to time and if it is something you may want to add to your technical toolbelt. Caution: this pattern often comes with higher risk than typical chart patterns you will encounter.
Have you ever seen a dead cat bounce? Take a look at Ascent right now. You might be witnessing one right now. We say “might” as the current pattern will need to pan out more before it can be identified. Essentially with a dead cat bounce what happens is a downtrend becomes extremely bearish and prices fall hard such as with Ascent. At some point of the price free fall the start to recover aka the bounce and go back up some. The idea is that even a dead cat will bounce if falls from high enough. What can happen often is a temporary rally before the prices begin to decline and resume the downtrend. This would likely
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