Genworth Financial--A classic exhaustion play
Yesterday's chart of Genworth Financial, GNW, exhibited all of the signs that selling pressure was over: an exhaustion gap and a long bottoming tail formed on huge volume. The bottoming tail is important because it signals that the number of sellers has run out and buyers are stepping in. It's no surprise to technical analysts that today was followed by a nice 7.5% pop (at the time of this writing).
See next instablog for an exhaustion gap forming today!