reaccumulate

Reaccumulate is a term used in finance and investing to describe the act of accumulating assets again after an earlier period of accumulation or after a decline. In market analysis, reaccumulation refers to a phase during which large operators resume buying to rebuild positions without triggering a sustained rise in price, thereby creating a new base for the next advance.

In Wyckoff's market cycle framework, reaccumulation is a distinct phase that can occur after an uptrend or after a pullback within an uptrend. It is characterized by a trading range in which price meanders, demand gradually absorbs supply, and the overall trend remains up. Volume patterns typically show higher demand on price weakness and on tests of support, but not the kind of explosive buying that marks initial accumulation. The goal is to accumulate additional shares or contracts quietly enough to avoid tipping the market into a steep rally or a renewed distribution.

Signatures of reaccumulation include a defined price range with relatively balanced supply and demand, higher lows on successive tests, and eventual breakout with increased participation as the base is completed. Reaccumulation differs from the initial accumulation by occurring within or at the edge of an existing uptrend and by the presence of range-bound, wavelike price action rather than a broad consolidation at lower prices.

Use and interpretation: Traders who follow Wyckoff or similar technical theories watch for reaccumulation to anticipate the next leg of gains. It implies institutional interest and a renewed bid to support higher prices.