One of the clearest indications that a stock is set to rise occurs when the daily volume spikes four to ten times higher than normal. This is especially true if the volume was previously low. The volume spike is like a skyscraper in the desert. It means that institutions or rich individuals are highly interested in the stock.
A huge volume spike shows that more buying and stock price increases are on the way. Brigham Exploration was such a stock in 2009. The company has large oil deposits up north near Canada in the Bakken area. The stock has risen over ten times from $1 to $13 in 2009. A large volume spike in May was the clue that it had a lot more room to run when it was around $3 per share.
To find out more about volume spikes along with other company names, go to ClusterGains.com. The economic aspects of the stock market as well as chart links and many other indicator links are located on the website.
About Me
- John
- Harrison, TN, United States
- 19 years of stock market experience trading thousands of stocks. Please do your own research and consult with a financial adviser before buying anything. I am not responsible for any losses. My ideas are just suggestions that may be profitable sometimes but not always since the stock market is constantly changing. Please write to me if you wish, jso10130@yahoo.com. My main website is http://www.fibonacci-stocks.com where I discuss stocks extensively.
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