#MarketPullback

1. What Is a Pullback?

A pullback is a brief decline or pause in a generally upward price trend of a stock or other asset. Investors who are confident that the pullback will be brief use it as a buying opportunity. A pullback can occur for many reasons, some of which are unrelated to the fundamentals of the stock.

•KEY TAKEAWAYS•

•A pullback is a temporary reversal in the upward price trend of a stock or other investment.

•A pullback typically lasts only a few consecutive sessions.

•Pullbacks can provide an entry point for new investors when other technical indicators remain bullish.

•Investors can use limit orders or stop entry orders to take advantage of a pullback.

•What Does a Pullback Tell You?

A pullback is similar to a retracement or consolidation, and the terms are sometimes used interchangeably. The term pullback is usually applied to short-lived price declines—only a few consecutive sessions—before the uptrend resumes.