Rank | Ticker | Days Since Previous High |
---|---|---|
1 | SMCI 🚀 | 44 |
2 | ZIM 🚀 | 38 |
3 | RDDT 🚀 | 35 |
4 | SHOP 🚀 | 35 |
5 | AMD | 34 |
6 | AMDL 🚀 | 33 |
7 | BABA | 32 |
8 | BIDU | 29 |
9 | EH | 29 |
10 | PDD | 29 |
11 | AA | 28 |
12 | APLD 🚀 | 28 |
13 | RCAT 🚀 | 23 |
14 | CELH 🚀 | 15 |
15 | DJT 🚀 | 13 |
16 | GOOG | 13 |
17 | GOOGL | 13 |
18 | RKLB 🚀 | 12 |
19 | SOFI | 11 |
20 | GGLL | 7 |
21 | U 🚀 | 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.