#MarketPullback
What is a pullback?
A pullback is a brief decline or pause in the upward trend of a stock or other asset. Confident investors who believe the pullback will be short use it as a buying opportunity. A pullback can occur for various reasons, some of which are unrelated to the fundamentals of the stock.
Technical analysts, who monitor stock price movements to establish trends, identify the "support level," or the lowest price a stock is likely to reach before buyers retreat.
Key takeaways
A pullback is a temporary reversal in the upward price trend of a stock or other investment.
A pullback typically lasts only a few consecutive sessions.
Pullbacks can provide an entry point for new investors when other technical indicators remain bullish.
Investors can use limit orders or stop entry orders to take advantage of a pullback.