Consolidating class c commodity inventory
The biggest limitation to trading pullbacks is that a pullback could be the start of a true reversal.
A pullback is a pause or moderate drop in a stock or commodities pricing chart from recent peaks that occurs within a continuing uptrend.
Similarly, it could be a negative settlement, a new competitor releasing a product or some other event that will have a long-term impact on the company underlying the stock.
These events, while happening outside of the chart, so to speak, will appear over several sessions and initially will seem much like a pullback.
Traders should carefully watch these key areas of support since a breakdown from them could signal a reversal rather than a pullback.