#MarketPullback

A market pullback refers to a temporary decline or retreat in the price of a financial market or an asset after a period of upward momentum. It is typically a short-term price movement and is often seen as a natural part of a market cycle. Pullbacks can occur in stocks, bonds, commodities, or other financial instruments.

Key Features of a Pullback:

1. Temporary Nature: Pullbacks are usually brief and are not as severe as corrections or bear markets.

2. Occurs After Gains: They generally happen after a strong upward trend or rally in the market.

3. Buying Opportunity: Many investors and traders view pullbacks as opportunities to buy at slightly lower prices during an overall uptrend.

4. Causes: Pullbacks can be triggered by profit-taking, minor negative news, or shifts in market sentiment.

Example:

If a stock's price has been rising steadily from $50 to $100 and then declines to $90 before resuming its upward trend, that $10 drop would be considered a pullback.