A pullback is a short-term decline or pause in the overall upward trend of a stock or other asset's price. Investors who are confident that the pullback will be brief use it as an opportunity to buy. A pullback can occur for many reasons, some of which are unrelated to the fundamental indicators of the stock.
Technical analysts who track price movements to establish trends identify a "support level" or the lowest price that a stock is likely to reach before buyers return to the market.
A pullback is a temporary reversal of the upward trend in the price of stocks or other investments.
Pullbacks usually last only a few consecutive sessions.
Pullbacks can provide an entry point for new investors when other technical indicators remain bullish.
Investors may use limit orders or stop-entry orders to take advantage of a pullback.
