Trulia (NYSE: TRLA): Bullish Reversal Signals 'Buy'

September was the month when many social media high-fliers topped out. Real estate community stock Trulia (NYSE: TRLA) was in the thick of things, running from roughly $15 at the start of the broad market's rally in November 2012 to a high of $52.71 in September of this year for a gain of more than 250%. Not too shabby.

When the pack turned, TRLA dropped like a stone, getting cut almost in half only three months later. However, such a steep drop breeds opportunity for short-term traders. And with many signs of capitulation, Trulia may have a nice bounce in the offing.

Capitulation is when the final bulls throw in the towel as they dump whatever they have at any price. We typically see a large range day to the downside after a long decline with exceptionally heavy volume. Sentiment drops to bearish extremes as everyone who was left to sell theoretically has already done so.  (more)

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