The term "Market Rebound" refers to the recovery that occurs in financial markets after a period of decline or recession. Generally, it can be understood as follows:
What is it? It is the return of prices to rise in a specific market (stock market, commodities, real estate, etc.) or in the economy as a whole, after a period of retreat or sharp decline. The rebound is considered a natural phase in the economic business cycle.
Why does it happen? Market rebounds can occur for various reasons, including:
Overcorrection: When prices fall excessively due to panic or mass selling, the asset becomes undervalued, attracting buyers.
Positive news: Any positive economic or political news (such as improved unemployment data, increased corporate profits, trade agreements, government stimulus packages) can boost market confidence and drive prices up.
Technical support: In technical analysis, when prices reach certain support levels, this can attract buyers and lead to a rebound.