Chua92
08-03

📈 How to Tell If a Stock’s Rally Still Has Room to Run

A stock that’s moving up quickly can be exciting — but jumping in too early or too late can be costly. Here are a few signals that might help you decide if it’s still safe to enter:

1. Volume Confirms the Move

• Strong rallies should be supported by high trading volume.

• Low volume might signal a weaker move that could reverse.

2. Healthy Pullbacks

• After sharp gains, watch for small pullbacks to key support levels (e.g., 20-day or 50-day moving average).

• This shows the rally is consolidating, not collapsing.

3. RSI Not Overheated

• Relative Strength Index (RSI) under 70 often means there’s still room before it’s “overbought.”

4. Strong Fundamentals

• Positive earnings growth, revenue trends, and sector momentum can support further gains.

5. Market Conditions Support Risk-On

• If the broader market is bullish, your chances improve.

💡 Tip: Never enter just because the price is going up — confirm with both technical and fundamental signals.

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If a Stock Is Too Strong, What Signals Tell You It’s Safe to Enter?
As US stocks keep hitting new highs, do you often encounter this situation: a stock has solid fundamentals and beats earnings expectations, but there’s just no good entry point? Then when it finally dips, you're afraid of catching a falling knife and don’t dare to buy?So how exactly should we choose our entry point?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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