Bearish Trend

Bearish Trend is a notion issued in the financial market. Originally there are two terms: the Bullish Trend and the Bearish Trend. Bulls and Bears are the names given to traders according to their attitude towards the market. The Bulls hope the market will pick up; the Bears think the market will fall.

Bearish Trend is defined as a downtrend of the industry stock prices. It also means the falling tendency of the broad market coefficients. Bearish Trend is a phrase used to describe the investor’s pessimistic inclinations about the market prices falling. Usually, a 20% fall in the prices is characterized as the bearish trend.

The phrase “I’m bearish on gold,” means the trader thinks the price of gold will go down. Traders form their opinion according to the latest trends in the industry. However, the majority of the Bullish or Bearish opinions may influence the market and make it go either up or down.

Because the S&P 500 index has increased nearly 300% recently, people can now observe a bull market.

It is possible for the two trends to coexist. For instance, a trader can be bullish on one specific market (e.g. crude oil) and bearish on another (e.g. euro currency).