Pocket Pivot

A Pocket Pivot is a bullish chart pattern where a stock's price pulls back slightly within an uptrend, then breaks above its previous high—all while staying within a narrow price range. You'll see this pattern in technical analysis, the study of price charts to predict future moves. It matters because traders view it as a sign of strong buying interest: the stock dips just enough to shake out nervous sellers, then immediately resumes climbing. Think of it like a runner taking a quick breath before sprinting ahead. For example, if TechCorp rallies to $50, dips to $48, then breaks above $50 again on strong volume, that's a pocket pivot—a potential signal that the uptrend has legs.