DEFINITION of 'Bottom'

The lowest point or price reached by a financial security, commodity, index or economic cycle in a given time period. A specific time span is usually used to determine a bottom - most commonly, 52 weeks - but that timeframe could stretch over years, or remain intraday.


If a stock has "bottomed out", it means it might have reached its low point and could be in the early stages of an upward trend. Investors usually see a bottom as an opportunity to purchase securities when they are potentially underpriced.

The bottom is used in technical analysis by defining the lowest level of support when charting a stock, commodity, index or economic cycle.

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