Bear Trap

Dictionary Says

Definition of 'Bear Trap'

A false signal that the rising trend of a stock or index has reversed when it has not.
Investopedia Says

Investopedia explains 'Bear Trap'

This can occur during a bear market reversal when short sellers believe the markets will sink back to its declining ways. If the market continues to rise, the short sellers get trapped and are forced to cover their positions at higher prices.

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