Rank | Ticker | Days Since Previous High |
---|---|---|
1 | NTR | 41 |
2 | MOS | 39 |
3 | MRVL 🚀 | 39 |
4 | AR | 38 |
5 | MP | 29 |
6 | XPEV 🚀 | 19 |
7 | ALB | 18 |
8 | ULTA | 16 |
9 | BHP | 14 |
10 | CME | 14 |
11 | EBAY | 14 |
12 | YUM | 9 |
13 | EXAS | 8 |
14 | FUTU | 7 |
15 | CVX | 6 |
16 | MO | 6 |
17 | ZTO | 6 |
18 | INTC 🚀 | 5 |
19 | LI | 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.