GUN's recent price movement has been interesting. The breakout is obvious, and a bearish pattern has opened up. Some people see bounces and want to rush in, not realizing this may just be a breather during the downtrend. Bottom fishing sounds attractive, but in reality? You often end up chasing from the highs all the way down to the lows, and you never finish buying. To earn a small amount from the bounce, you put in your principal—no matter how you calculate it, this trade doesn't add up. The technicals clearly point downward, so trying to counter-trend bottom fish at this time means risk far outweighs reward.
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GUN's recent price movement has been interesting. The breakout is obvious, and a bearish pattern has opened up. Some people see bounces and want to rush in, not realizing this may just be a breather during the downtrend. Bottom fishing sounds attractive, but in reality? You often end up chasing from the highs all the way down to the lows, and you never finish buying. To earn a small amount from the bounce, you put in your principal—no matter how you calculate it, this trade doesn't add up. The technicals clearly point downward, so trying to counter-trend bottom fish at this time means risk far outweighs reward.