#ReboundRally A rebound rally refers to a sharp, temporary recovery in the price of a stock, index, or the overall market after a significant decline. It is often fueled by bargain-hunting investors, short-covering, or improved market sentiment. Rebound rallies can occur during bear markets or after sudden sell-offs and may not always signal a lasting recovery.

Key characteristics of a rebound rally include:

1. Short-Term Movement: Often lasts for a short duration, ranging from days to weeks.

2. Volatility: Prices may swing sharply as investors react to news or market conditions.

3. Market Conditions: Frequently happens after oversold conditions or extreme pessimism.

4. Catalysts: Positive news, economic data, or central bank interventions can trigger the rally.

While a rebound rally can provide opportunities for traders, investors should evaluate whether it’s part of a sustainable trend or a temporary recovery before making long-term decisions.