#MarketRebound

Marker rebound is a term often used in financial markets to describe a situation where an asset—such as a stock, cryptocurrency, or commodity—experiences a sharp recovery in price after a period of decline or selling pressure. It typically happens when traders believe that an asset has been oversold or has reached a support level, prompting buying interest and causing the price to bounce back.

Marker rebound is a term often used in financial markets to describe a situation where an asset—such as a stock, cryptocurrency, or commodity—experiences a sharp recovery in price after a period of decline or selling pressure. It typically happens when traders believe that an asset has been oversold or has reached a support level, prompting buying interest and causing the price to bounce back.

Key Characteristics of a Marker Rebound:

Occurs After a Sharp Decline: A rebound usually follows a rapid price drop caused by panic selling, news events, or broader market downturns.

Psychological Support: Traders often look for psychological price levels (like round numbers or previous lows) where rebounds are likely to occur.

Volume Surge: Strong rebounds often come with increased trading volume, showing that buyers are stepping in with confidence.

Short-term Opportunity: Scalpers and day traders often take advantage of rebounds for quick profits, especially if technical indicators (like RSI or Bollinger Bands) suggest oversold conditions.

Catalyst Driven: Sometimes, rebounds are triggered by positive news, central bank announcements, or market corrections after an overreaction.

Example:

Imagine a stock drops from ₹500 to ₹400 in two days due to bad earnings. However, the broader market remains strong, and the earnings miss wasn’t as bad as expected. As traders realize the dip was overdone, buying pressure increases. The stock rebounds from ₹400 to ₹450 in one day. That bounce-back is called a marker rebound.