A Bearish Zone in financial markets can be defined as a downward trend in the prices of an industry’s stocks or the overall fall in broad market indices. Bearish trend is characterized by heavy investor pessimism about the declining market prices scenario.
Bears (sellers) believe things will worsen and hence enter the market with the mindset of selling the assets. When you take a bearish position in the market, you’re said to be “short.” Price fluctuation from this point up or down will modify the value of a bear’s account in market increments.