Financial

U-Formation

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U-Formation

In technical analysis, a situation in which a security or economy declines in price, and only gradually recovers. A U-formation may be bullish in the long run, but one may not realize gains or profits immediately. In the case of an economy, a U-shaped recovery may indicate that job growth and investment gains are slow in coming. See also: W-type bottom, V-shaped recovery, W-shaped recovery.
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