Over the years, I've read over and over again that consolidations in an uptrend were a healthy phenomenon. Inability to break down meant investors (basically) have every faith in a companies abilities and find value at the current price. After a consolidation (the longer the better) a move higher would come. Let's look a few examples: (click all charts to enlarge)
AAPL is very well known for it's consolidations, or taking a "rest" before moving higher as this weekly chart reveals. Investors clearly believed in their innovation and were willing to add to positions during these consolidation periods; thus holding up the price and holding the range. That's called appetite, right there.
In fact, the longer the consolidation, the greater the move holds true; especially when you take a look at the biotech ETF IBB. After it's debut as a new ETF, investors found value in it at $40 and began to accumulate. After a brief reversal up, held it in consolidation for an amazing eight year
