THE MARK-UP PHASE



This is the phase that follows the accumulation phase. One of the ways to know this phase is becoming evident is to see a stock or sector that has "broken out " of its neutral range. Right from here an obvious increase in volume should be seen. At this point, most institutional investors and individual investors who are aware of this early trend jump on board bringing along a significant buying power.

Another way of knowing this trend is here, is to start seeing stock setting a higher lows and a higher highs, gaining volume and frequently testing key levels of resistance as it essentially marking the end of the battle between the bulls and the bears, with the bulls prevailing. At this point, the previously dull stock becomes attractive to all investors looking to profit from the upward momentum. Towards the end of the mark-up phase, a full market participation will be seen whereby everyone will likely to have made an investment. This paves the way for the next wave.

Investdata Academy

Comments

Popular posts from this blog

INTRODUCING EDU-PRO SCHOOL MANAGEMENT APPLICATION SYSTEM

APPROACHES TO COMPETITIVE POSITIONING IN AN ORGANIZATION

Profit Taking Ahead, As Investors Await Results Of Interim Dividend Stocks