What is a Trend Reversal?
Trend reversals are changes in the direction of individual investments or a market as a whole. Sometimes known simply as a reversal, a trend reversal identifies a shift in investment activities that is anticipated to remain in place for an appreciable period of time. This shift may be a rally for a given stock, or a rally for a stock market as a whole. A trend reversal may not be a positive occurrence, as it can also mean a market or individual investment is entering a period of sustained downturn. A trend reversal is normally identified by investors and financial professionals as they evaluate the current status of a marketplace. As part of the overall analysis, the reasons for the current status of the stock or the market are identified. If one of more of those reasons is shortly anticipated to cease being relevant, analysts will attempt to project the future performance of the market or stock. If all indications point to a change in the current trend of the stock or market under con
