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When does a pullback fail in a bull trend

A) When it reaches a new high
B) When it breaks a previous low
C) When it shows increased volume
D) When it lacks follow-through

User R Down
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Final answer:

A pullback in a bull trend fails when it breaks a previous low, indicating a potential trend reversal and weakening of the current upward trend.

Step-by-step explanation:

When discussing a pullback in a bull trend, it typically fails when it breaks a previous low. This indicates a potential trend reversal or weakening of the current trend. A pullback is considered a temporary decrease in the price of an asset within an ongoing uptrend. When the pullback goes below a significant previous low, it can signal a change in market sentiment, potentially leading to the end of the bullish trend.

Therefore, option B) When it breaks a previous low is the correct answer. This is different from reaching a new high, which would actually confirm the continuation of the bull trend. Increased volume can provide further confirmation of the trend's direction, and lack of follow-through may simply mean a pause in the uptrend, not necessarily its failure.

User BeRecursive
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