technical rally

Technical Rally

An upward movement in a security's price following a declining trend. The movement is caused by technical as opposed to fundamental factors affecting sentiment.

Notes:

For example, technical analysts may identify a particular support price, and as a result, an increase in price is experienced once that price is reached.

See also: Bull Market, Correction, Dead Cat Bounce, Falling Knife, Panic Selling, Retracement, Support, Technical Analysis, Trend

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Technical rally

Short rise in securities or commodities futures prices in the face of a general declining trend. Such a rally may result because investors are bargain hunting or because analysts have noticed a particular support level at which securities usually bounce up. Antithesis of correction.

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technical rally

A temporary rise in a security price or in the general market during a downward trend. Technical rallies are considered interruptions to a general trend.