From Nasdaq: 2024-11-20 16:00:00

History is filled with examples of epic bubbles in different markets, from the Tulip Mania in the 17th century to the GameStop short squeeze in 2021. While bubbles often end in a crash, embracing them can lead to significant gains. Recognizing climax tops can help investors spot when a bubble is about to burst.

In 1999, Qualcomm saw a massive rise in its stock price, reaching $200 before a classic climax top marked the end of its meteoric run. Understanding the signs of a climax top, such as the largest daily price run-up, heaviest volume, and exhaustion gaps, can help investors protect their gains and avoid losses.

Today, MicroStrategy is showing early signs of a potential climax top, with massive volume turnover and larger point spreads. Other caution signs include approaching Fibonacci extension levels and being significantly above the 200-day moving average. Recognizing these signs can help investors make informed decisions and avoid losses.

Zacks Research Chief has identified the “Stock Most Likely to Double” among five stocks with the potential to gain over 100%. This top pick is an innovative financial firm with a growing customer base and cutting-edge solutions. While not all picks may be winners, previous Zacks’ Stocks Set to Double have seen significant gains.



Read more at Nasdaq: Is MicroStrategy Forming a Blow-off Top?