Newlead Holdings Ltd. (fka NEWLF)

[Rhee]

It usually bounces at a double bottom. The question always is whether it follows through to the upside. Generally speaking, a bottom can only be tested twice, in both the short-term and medium-term. On third tests, in the absence of catalyst, it generally gives. Like jumping on a floor until it caves.

A good example is how AAPL bottomed. Its bottom brought it all the way up to its top. But there, there were great sales, product development, strong guidance, etc. demonstrating its sell-off had undervalued the stock. Here it depends on the MM, PR, whether shorts take their profit at .10, etc.

The stock isn't sound. So, maybe better to look for a double bottom on a stock in a long-term uptrend. Or just sell any bounce.