Rank | Ticker | Days Since Previous High |
---|---|---|
1 | BAC | 44 |
2 | JNJ | 43 |
3 | CVNA | 41 |
4 | SIRI | 37 |
5 | VALE | 36 |
6 | SPG | 32 |
7 | TIGR 🚀 | 28 |
8 | MCD | 26 |
9 | PTON 🚀 | 22 |
10 | ZIM 🚀 | 16 |
11 | ACI | 14 |
12 | BP | 13 |
13 | AI 🚀 | 9 |
14 | TNA | 9 |
15 | AA | 8 |
16 | FCX | 8 |
17 | IREN 🚀 | 8 |
18 | MU | 8 |
19 | GPC | 7 |
20 | PTEN | 7 |
21 | XOM | 7 |
22 | BA | 6 |
23 | CART | 5 |
24 | DJT 🚀 | 5 |
25 | ERX | 5 |
26 | FAS | 5 |
27 | TAL 🚀 | 5 |
In stock trading, a "consolidation" period is a phase where a stock's price trades within a narrow range, often with decreasing volume. This represents a period of market indecision, where buyers and sellers are in a relative balance. The "good" thing about a stock breaking higher out of this consolidation is that it can signal the start of a new, powerful uptrend. A breakout to the upside suggests that buyers have finally overwhelmed sellers, and the accumulated energy from the consolidation period is being released in a bullish direction. This is often accompanied by a significant increase in trading volume, which confirms the conviction of the move. The longer and tighter the consolidation, the more significant the potential breakout. For traders, a breakout from consolidation can provide a low-risk, high-reward entry point. The resistance level that defined the top of the consolidation range now becomes a new support level. This provides a clear area for traders to place a stop-loss order, helping to manage risk. The potential for a strong, sustained move higher makes this a favorite strategy for identifying new momentum plays.