48North Cannabis Corp. V.NRTH

Capitulation Continued

[Zingiber]

Capitulation is marked by an extreme increase in volume as sellers are scrambling to exit positions, and not enough buyers are present to control the pace of selling.
At some point the panic selling stops, and buyers realize that the price has moved far from its rational value.  Timed correctly, buyers often have large gains when rational behavior returns and prices move back to more efficient levels.
For those who identify the move as capitulation it can provide excellent buying opportunities.