OWC Pharmaceutical Research Corp (OWCP)

[I FAR I]

DO NOT BE FOOLED AND SELL: THEY WANT YOUR SHARES AND SHORTS MUST BE COVERED

Springs or shakeouts usually occur late within a TRADING RANGE and allow the stock’s dominant players to make a definitive test of available supply before a markup campaign unfolds.

A “spring” takes price below the low of the Trading Range and then reverses to close within the TR; this action allows large interests to mislead the public about the future trend direction and to acquire additional shares at bargain prices. A Terminal Shakeout at the end of an accumulation Trading Range is like a Spring on steroids.

Shakeouts may also occur once a price advance has started, with rapid downward movement intended to induce retail traders and investors in long positions to sell their shares to large operators.