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Trading and Investment Terminology

Jennifer Lopez

In technical analysis, a rounding bottom in a stock’s price pattern is nicknamed a Jennifer Lopez of J.Lo.


A J.Lo in a stock’s price pattern can be an indication of a positive market reversal, where expectations are gradually going from bearish to bullish.


In Simple


  • The price of a share reaches the bottom and gradually starts to increase, hence, the name rounding bottom. 


  • This means that the price of the security is moving from low to high and the increase is likely to be sustained. 


  • It is believed that this is a positive sign. If one creates a chart of the pricing of rounding bottom security then it would be U shaped. 


  • The prices tend to go upwards when the buyers enter the trade in the market at a low price which increases the demand of the share. 


  • Once the rounding bottom is complete, the share is likely to sustain its upwards trend. 


  • The market is such a condition that changes from bearish to bullish.

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