📈 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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