OSTK has seen capitulation many times over the past 15 years. The small float makes it an easy target for mid-tier short sellers who can help it maintain a downtrend relatively easily compared to higher float stocks.
These long downtrends usually end in capitulation, well below the estimated valuation of the company. It is common for there to be a shallow (in dollar terms) Doji candle on either the four hour or the daily chart at the bottom. The bottom occurs below the Bollinger band displayed above.
The typical bounce from the bottom of capitulation seen over the following 2 to 3 weeks is a gain of 33%
These long downtrends usually end in capitulation, well below the estimated valuation of the company. It is common for there to be a shallow (in dollar terms) Doji candle on either the four hour or the daily chart at the bottom. The bottom occurs below the Bollinger band displayed above.
- At $9.30 OSTK will have dropped 60% from the March highs.
- At $9 OSTK will have dropped 90% from the highs.
The typical bounce from the bottom of capitulation seen over the following 2 to 3 weeks is a gain of 33%
