Usually when a stock ( or more specifically stocks in same sector or group) clears a major resistance like 1-2-3-5-10-15-20 year highs, it indicates that something has changed for that company or group or sector. Stocks can go up 5-10% based on rumours, or some concentrated buying by a famous names and then followed by their followers , or some fundamental triggers etc. But these often are short lived, unless the trigger is strong enough to keep the stock’s uptrend going.
But when we have a stock that clears say 5 year high, it indicates that all the negative sentiments, news,fundamentals that it suffered from during the last 5 years have been overcome. ( In some rare instances, stocks collapse after clearing major resistances. But these are rare) And once a change in perception (positively ) regarding a business happens, there is a strong appetite for that particular stock among market participants.
And logically speaking also, for a stock that has not gone anywhere for a long period of time to post all time highs will entail clearing first a 1 year high then a 2 year high and so on and so forth. So for us, its a choice when to join the journey in a stock’s upmove . For that we have to work on the company and try to figure out triggers, by researching the company in details.
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