A price bottom is referenced for a variety of reasons in financial publications. Typically a relative bottom might serve as anchor to reference returns from that point. Such returns are nearly mythical in nature since investors rarely if ever buy a security at the precise lowest point of trading—the bottom of a price trend for that period.
What is a stock market bottom?
A bottom is the lowest trading price for a security or index over a particular period of time. Stock market bottoms are usually identified in retrospect as the lowest point on the chart of a benchmark index like the S&P 500. What Is a Bottom in the Stock Market? Why Is It So Hard to Time a Bottom? Do Stocks Usually Bottom at the Same Time?
What does it mean if a stock has bottomed out?
If a stock has bottomed out, it means that it reached its low point and could be in the early stages of an upward trend. Often a bottom can be a signal for a reversal. Investors often see a bottom as an opportunity to purchase a stock when the security is underpriced or trading at its lowest value.
