Pullback

A pullback is a temporary dip in a stock's price while it's in an overall uptrend. Think of it as a brief pause or step backward before the stock continues climbing. You'll hear traders mention pullbacks constantly because they're normal market behavior—stocks rarely go straight up. Pullbacks matter because they can signal whether a stock is still healthy or losing momentum, and some investors use them as buying opportunities. For example, if TechCorp stock has been rising for months but suddenly drops 5% in a week, that dip might be a pullback rather than a sign the rally is over. The key is distinguishing a normal pullback from a real reversal, which takes experience and research.