#MarketPullback
It is a natural and healthy part of market cycles, often occurring after a strong rally or prolonged upward trend. Pullbacks are generally short-term and should not be confused with market corrections (usually around 10% or more) or bear markets (20% or more decline).
Pullbacks often happen due to profit-taking by investors, changes in economic data, geopolitical events, or shifts in investor sentiment. While they may cause concern among some traders, many seasoned investors view pullbacks as opportunities to buy high-quality stocks at slightly discounted prices.
Technical analysts often use pullbacks to identify support levels or potential entry points. Fundamentally, if the market outlook remains strong and there are no major underlying issues, a pullback can be seen as a breather before the next move upward.
It's important for investors to stay calm during pullbacks and avoid emotional decision-making. Long-term strategies usually remain unaffected by short-term volatility, and understanding the reasons.