Dead Cat bounce is a financial Buzz word. In technical analysis we use this term to explain A temporary recovery from a prolonged decline or bear market, after which the market continues to fall. it happens because of short interest of investors. In a bearish market when demand and supply is not adjustable then for some specific period demand creates among the investors. it increases price of share for one or two days. Basically it is a Dead Cat Bounce. Recently, in our DSE chart we have seen this Dead Cat Bounce. Just look at the graph. After September month DSE index increased and volume also increased but did not sustain that level. It again happened in October and also in November month but did not sustain. This situation is called dead cat bounce.
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