Pullback

A temporary decline in price during an ongoing uptrend, often viewed as a buying opportunity by trend-following traders. Pullbacks typically retrace a portion of the prior move -- Fibonacci levels of 38.2%, 50%, and 61.8% are common reference points. Distinguishing a healthy pullback from the start of a genuine reversal is one of the core challenges in technical analysis, and traders often look for volume contraction during the pullback as a sign that selling pressure is limited.