Ok, so I kind of know about consolidation but I have a few questions as to what really qualifies as consolidation for some more complex scenarios for me.
By definition to me it would be stock trading sideways within a small range and limited time, this will depend on many factors of the company like market cap, outstanding shares, sp price, etc. What about situational scenarios?
1) If a stock is still trading sideways still, how long and what range would you consider it still consolidation and trading sideways?
2) If lets say, Positive catalyst news reports are constantly getting release and a price is still trading sideways, is that still consolidation? On book yes but in reality? What support and resistance levels, chart lines and volume fits to make this consider consolidation for you guys?
Right now I'm arguing with people regarding stock that is supposedly “consolidating” for the past year now because it's barely moving, mostly red days, after many catalyst hyped up things have been completed and released .. How can we come to a conclusion if it is still consolidating as every few days the support and resistance levels change? What range can we use on statistics chart line to make it a fair argument if it is still consolidating or not?
To me, I would think trading sideways after big news that are surely going to affect a company will surely move its stock, either way, up or down. For example, If a stock is releasing 20x expecting ER, it is surely going to move the price and wouldn't trade sideways. If for some reason it does and it is trading sideways, I would consider that tanking and vice versa rallying if the other way around (Super negative news but trading sideways and overall slight green days). Some news are just guaranteed to move a stock.
I'm looking for discussions and ideas, this is not about whose right or wrong as everyone looks and goes by different charts. Please share your input on this and any similar scenarios are problems concerning it.
Thank you
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