Rank | Ticker | Days Since Previous High |
---|---|---|
1 | UL | 45 |
2 | COST | 35 |
3 | T | 35 |
4 | CHWY | 34 |
5 | KO | 33 |
6 | PGR | 31 |
7 | EC | 23 |
8 | ADI | 21 |
9 | ACN | 12 |
10 | LYB | 12 |
11 | AGNC | 11 |
12 | DRN | 11 |
13 | VTR | 10 |
14 | XOM | 10 |
15 | D | 8 |
16 | ORLY | 8 |
17 | PM | 7 |
18 | BTI | 6 |
19 | CCI | 5 |
20 | DIS | 5 |
21 | KMB | 5 |
22 | KR | 5 |
23 | MKC | 5 |
24 | UTSL | 5 |
25 | WELL | 5 |
26 | WY | 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.