#ReboundRally what is Rebound Rally ..?

A rebound rally refers to a short-term recovery in the stock market or in a specific asset after a significant decline or a period of downward movement. It is characterized by a sharp, often unexpected rise in prices, which can occur as investors take advantage of lower prices or as market sentiment temporarily improves. However, a rebound rally is typically seen as a corrective movement rather than a sustained trend, as it often precedes another decline or a return to the previous bearish trend.

Rebound rallies can happen for several reasons, including:

Overreaction to market events: After a sharp sell-off, investors may decide that prices have become too low, leading to buying activity.

Technical factors: Traders may identify support levels or technical indicators suggesting that the market is "oversold," prompting a short-term rally.

Positive news or data: News such as strong economic data, corporate earnings beats, or government interventions can temporarily boost market sentiment.

While rebound rallies can provide short-term gains, they are often considered unsustainable if underlying negative factors (such as weak economic conditions or geopolitical risks) are still in play.