What is a Technical Rally?
A technical rally is an upward price movement that takes place even though the market in general is demonstrating a trend of descent. The rally is usually short lived and will cease as the market begins to level off. At that point, the stock that had enjoyed the technical rally may go into a brief period of decline. The phenomenon of a technical rally in the face of a generally descending market is usually created by something other than the economic factors that normally drive the demand for the stock. For example, investors who are hunting for bargains during the period of decline may identify a given stock offering as having potential to turn a handy profit once the market trend has reversed. If enough investors begin to show an interest in a given stock, it may begin to demonstrate a pattern of increase that is contrary to the rest of the market. It is this increased interest and the resulting increase in the price per share that ultimately causes the brief period of technical rall
