5 ASX Power Play Stocks: Gary Glover's Explosive Momentum Leaders with 100%+ Rallies

Power play stocks on ASX demonstrate explosive rallies of 100%+ followed by tight consolidation on declining volume—Mark Minervini's highest probability momentum pattern. Gary Glover's February 2026 analysis identifies 5 ASX stocks exhibiting true power play characteristics: EQR (tungsten/gold), SLS (lithium services), LAT (mining services), MSV (engineering), and VBX (tech IPO). These stocks rallied 100-300% before entering consolidation phases with minimal selling pressure—the volume signature indicating institutional accumulation. When power plays break out of tight ranges on increasing volume, historical precedent suggests continuation moves often exceed the initial explosive rally.

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What Makes Power Play Stocks the Highest Probability Momentum Setup?

Power play patterns represent Mark Minervini's favoured momentum setup—stocks demonstrating explosive advances of 100% or more compressed into short timeframes, followed by tight consolidation showing minimal selling pressure. Unlike standard <a Volatility Contraction Patterns that develop through multiple base-building phases over months, power plays accelerate rapidly and consolidate briefly before potential continuation.

The pattern's effectiveness stems from institutional accumulation dynamics. When stocks surge 100%+ in weeks rather than months, individual retail traders typically exit to "lock in profits." Institutional investors, operating with different timeframes and position sizes, use the consolidation phase to accumulate shares without driving prices higher prematurely. This creates the characteristic volume signature: heavy buying on rallies, virtually no selling on pullbacks.

Minervini emphasises the power play's superior probability profile: "When a stock makes an explosive move of 100% or more in a very short time, then consolidates tightly, it's signaling that institutions are still accumulating. These stocks often make their biggest gains AFTER the first explosive move." This counterintuitive principle—that the biggest gains follow rather than precede explosive moves—separates momentum professionals from reactive traders who exit "too early" after initial surges.

Gary Glover's February 2026 analysis reveals only 5 ASX stocks meeting strict power play criteria despite the ASX 200 trading near all-time highs. This selectivity reflects current market structure: while the index appears strong, just 44% of ASX stocks trade above their 50-day moving averages. The concentration creates opportunity through focused positioning rather than broad diversification.

The power play framework prioritises pattern quality over quantity. As detailed in Minervini's complete SEPA methodology, Stage 2 uptrends combined with explosive price action and institutional volume create the foundation for sustained momentum continuation.

How Do Traders Identify Power Play Stocks Through Volume Signatures?

Volume behaviour distinguishes power plays from exhaustion patterns—the critical distinction separating continuation setups from blow-off tops. Gary Glover's framework centres on one principle: "We're not seeing any aggressive selling here. Every time it's had a bit of a pullback, we've seen the volume just dry up. That's telling you that stock supply has stopped coming to market. That's why they're so explosive when they come out of these formations."

The volume signature follows predictable characteristics across successful power plays:

Explosive Rally Phase: Heavy volume accompanies initial surge—often 200-400% of average daily volume as institutional buying overwhelms available supply. This volume expansion confirms genuine accumulation rather than low-liquidity price manipulation.

Consolidation Phase: Volume contracts dramatically during pullbacks. Glover's analysis reveals: "Look at those down days there—no selling, and a buying stripe straight away again. Have a few more down days like that, no selling in there, again we get a punch up through on good volume. That bar there is just like, no one wants to sell this stock."

Multiple Pullback Test: Power plays typically show 2-4 minor pullbacks during consolidation. Each pullback demonstrates progressively lighter volume—the quantitative evidence that sellers exhausted during the initial rally. When down days show volume at 30-50% of recent average, while up days maintain 100-150% of average, the pattern confirms.

This contrasts sharply with exhaustion patterns detailed in analysis of accelerating trend lines that break down. Blow-off tops show heavy selling volume during consolidation—institutional distribution disguised as "healthy profit-taking." The distinction proves binary: light volume pullbacks signal continuation, heavy volume pullbacks signal reversal.

David Ryan, one of Minervini's early mentors, emphasised the tight consolidation principle. Glover references Ryan's preference: "He really likes that cup and handle. He likes to see that really tight handle where the volume just stays nice and tight. If a pattern holds the 10-day moving average pretty much the whole time while going sideways, that's the ideal technical structure."

The mathematical reality: when institutional accumulation creates supply exhaustion, even modest buying pressure triggers explosive moves. Conversely, when distribution occurs, even strong buying barely lifts prices against persistent selling. Volume analysis reveals which dynamic operates before breakouts occur—providing edge through anticipation rather than reaction.

What Are the 5 Current ASX Power Play Stocks (February 2026)?

1. EQ Resources Limited (EQR.ASX) - Tungsten/Gold Dual Commodity Exposure

EQ Resources demonstrates textbook power play characteristics through sustained trend strength combined with minimal selling pressure. The stock hugged the 10-day moving average throughout its advance—the technical signature of strong hands maintaining positions despite normal volatility.

Glover's assessment: "We've had a pretty nice sort of trend there, really sort of hugging the 10 all the way through here. The one thing we see there so far is that, yeah, it looks a little extended here, but we haven't seen any real selling come in here. Every time it's had a bit of a pullback, we've seen some pretty heavy volume on the rallies."

The volume progression proves critical: massive volume bars during January surge, followed by consolidation showing virtually no distribution. Second-half January displayed "huge jump up, lots of green bars in the volume." Subsequent sideways movement maintained structure without triggering follow-through selling—the pattern indicating institutional support at current levels.

Entry considerations centre on range-break methodology. The stock consolidated in tight ranges showing declining volatility. Breaking above consolidation highs on expanding volume provides tactical entry, with stops placed just below the consolidation low to define risk precisely.

Sector strength supports the setup. While precious metals face exhaustion pressures documented in recent gold sector analysis, tungsten's industrial applications combined with gold optionality creates diversified commodity exposure less vulnerable to sector-specific corrections.

2. Solstice Minerals Limited (SLS.ASX) - Lithium Services Sector

Solstice Minerals exemplifies the episodic pivot pattern—explosive gaps on news followed by immediate consolidation. The stock surged from 45 to nearly 60 cents, representing a 33% episodic move that qualifies as part of larger power play structure when viewed across extended timeframes.

Glover's volume analysis revealed: "We've had 3, 4, almost 6 out of those sort of 5 days there of pretty strong volume. And now we've had a little pause there and seen 3 days down. Not particularly aggressive selling. Little one day here and then one, 2, 3 here. So this is holding really tight here and little selling, it's just drying up here."

The consolidation quality proves exceptional. Three consecutive down days showed minimal volume—the quantitative evidence that early profit-takers exhausted while longer-term holders maintained positions. When selling volume dries up this completely after explosive moves, historical precedent suggests high continuation probability.

Entry methodology follows tight-range breakout principles. Glover specified: "If that was a tight range finishing at 103 or 108, entry would be 108 and a half, 109. Stop placement just under 103, so 102, 101. That type of setup keeps risk pretty tight—getting stopped out is possible, but massive risk exposure is avoided."

Position sizing requires careful consideration given the episodic nature. The 45-60 cent gap represented approximately 30% range—outside Minervini's typical 14% episodic pivot maximum. Adjusting initial position size downward by 30-40% accounts for elevated volatility while maintaining exposure to potential continuation.

3. Latitude 66 Limited (LAT.ASX) - Mining Services

Latitude 66 demonstrates classic step-function momentum—what Minervini collaborator Qullamaggie describes as "step up, step sideways, step up, step sideways" progression. The pattern develops through impulsive advances followed by tight consolidations, each consolidation setting foundation for subsequent expansion.

Glover identified VCP characteristics within the structure: "There's another little impulsive move there. And then we've sort of tightened up here and, you know, like a nice little VCP pattern there really. Once we come through here, maybe we come through this—this is probably a better handle here, and once we come through this, well, I mean, that would have been a pretty good signal."

The entry timing proves instructive. Early breakout attempts showed modest volume—insufficient institutional participation. The "better handle" reference acknowledges that later entries, while seemingly "too late," often provide superior risk-reward through cleaner pattern completion and reduced false-breakout probability.

Entry trigger sits at break above 15.5-16 cent range. Volume expansion confirming breakout validates institutional participation—the critical distinction between genuine pattern completion and retail-driven head fakes that fail quickly.

Glover's principle applies: "Better signal which comes later gives us cleaner entry, lower risk point of view and most people aren't gonna trade that because they feel like they're coming in too late. But as we know with momentum shares, they tend to sort of have a big burst, have a cool off, and then they often have another big burst again."

This patience-driven approach aligns with research showing sector strength methods improve VCP success rates from 51% to 68% when proper entry timing combines with sector confirmation.

4. Mitchell Services Limited (MSV.ASX) - Engineering Services Exposure

Mitchell Services presents David Ryan's ideal cup and handle formation—exceptionally tight consolidation maintaining structure above the 10-day moving average throughout handle development. The pattern exemplifies institutional accumulation masked within minimal price movement.

Glover highlighted the consolidation quality: "The thing I found that was interesting there was that see how tight that stayed? Kind of went up to the handle here again, went up to that, made a nice cup there. This handle's a little short but what it does do is it—super tight, no volume. That's what David Ryan looks for. He really likes to see that really tight handle where the volume just stays nice and tight."

The technical structure proves exceptional: the stock held the 10-day moving average "pretty much the whole time" during consolidation—the quantitative signature of strong institutional support. When prices oscillate sideways while maintaining proximity to short-term moving averages, it demonstrates accumulation occurring without price concessions.

Volume behaviour confirms the setup. Rallies showed consistent expansion—"pretty good volume there on each of the uppers"—while pullbacks demonstrated contraction. The absence of selling days ("not seeing any selling days there so far") validates that supply exhaustion persists despite consolidation duration.

Entry occurred at breakout above the cup high. For traders entering post-breakout, the pattern still offers structure: consolidation above the 10-day moving average provides reference for stop placement, defining risk around the $5-7% range typical of David Ryan's methodology.

The engineering services sector exposure provides thematic support through infrastructure and industrial activity trends. Unlike pure commodity plays vulnerable to price volatility, services companies benefit from activity levels—a more stable revenue source during commodity price consolidations.

5. VBX Limited (VBX.ASX) - Technology IPO

VBX demonstrates the classic IPO lifecycle pattern—hot opening, fade as lockup expirations and early selling pressure emerges, then reconstruction as fundamental support rebuilds structure. The pattern research by Eve Boboch and Kathy Donnelly shows 20% of IPOs eventually gain 100%+, but 90% trade below day-one highs initially.

Glover identified the setup: "This is an IPO, so it's obviously come on hot early, then it's sort of faded, then we sort of start to break out here. And this is the classic sort of IPO sort of setup, is exactly that. Market gets excited then the news dries up, it fades, and then hopefully it builds out of the low."

The reconstruction phase showed positive characteristics. After the initial fade, the stock "does pop through here, a few volume bars in there" demonstrating renewed institutional interest. Critically, subsequent pullbacks showed "no selling, so that's constructive seeing no selling. And then once we come through here, we saw some pretty good volume, that was probably the biggest volume part from the first day."

Current technical status appears strong: "This has had a nice run up here, and now we've gotten tight here, and so far we've held that 10-day moving average. Pull back here shows really pretty narrow range with very light selling volume. That's telling you there's not conviction in selling—almost no downward pressure despite price movement."

IPO-specific risk management requires position sizing adjustment. Glover recommended: "If trading IPOs, probably want to start smaller than normal. If normally taking a 5% position size as a starter, on an IPO, probably cut that back to 3. If normally doing 10, maybe cut it back to 7. Just start a little smaller there and try and build into it."

The rationale proves sound: "It's a trickier trade and lot more volatile in those early days for the stocks." Early-stage public companies lack the price history and institutional ownership stability of established leaders, creating elevated whipsaw probability. Reduced initial sizing preserves capital during false starts while maintaining exposure to potential multi-year trends if fundamental execution validates initial promise.

How Should Traders Execute Power Play Breakouts?

Power play execution requires precision combining entry timing, stop placement, and position sizing adjusted for pattern-specific risk characteristics. The methodology balances opportunity capture against capital preservation—acknowledging that even highest-probability setups fail at rates requiring systematic risk management.

Entry Methodology: Range-break entries provide tactical precision. Glover's framework: "Ideally this thing tightens up even more, then the tight range and then buying the range break—buying half a cent or a cent above the break, above the high of the range." This entry style, popularised by traders like Jack Kellogg and Gil Morales, creates defined risk parameters from inception.

Stop Placement: Stops sit "just below the low of the range." If consolidation completes with a tight 5-8% range, stops typically sit 6-10% below entry—within Minervini's 7-8% maximum loss guideline referenced in VCP trade execution methodology. Glover specified for SLS: "If that finished at 103 or 108, buying at 108 and a half, 109, stop in at just under 103, so 102, 101."

Position Sizing Hierarchy:

• Standard momentum positions: 5-10% of portfolio (Minervini baseline)

• Extended power plays: Reduce to 3-7% (accounting for elevation above moving averages)

• IPO power plays: Reduce to 2-5% (accounting for elevated volatility)

The Free Carry Concept: After profitable moves, Glover advocates moving stops to breakeven: "We're in the perfect position here now. Got like a 10% position size on. It's had a nice move here. Probably just move my stop just under break even here. So, I've almost set myself up for a bit of a free carry here." This approach eliminates risk while maintaining upside exposure—the optimal risk-reward adjustment after initial thesis validation.

The risk management philosophy Glover articulated proves essential: "I'm most comfortable with getting haircut to death. I can take loss after loss after loss if they're small. It really hurts me if I take a big loss. When the market's free running, I'll have a period where I just make all the money over 3 months."

This acceptance of frequent small losses in exchange for avoiding catastrophic losses reflects mathematical reality: a 50% loss requires 100% gain for recovery, while ten 5% losses require just 56% gain for recovery. Power play trading succeeds through asymmetric payoffs—small defined losses against large undefined gains—not through high win rates.

The process diversity lesson from Larry Williams applies directly: "4 traders with exactly the same view of the market using the same cycle analysis. They all had the same view, but they ended up with 4 different results just because of the 4 different processes that they used to enter and how they traded. The processes is key."

Traders using 10-day moving average stops might have been stopped out of recent power plays that others holding 50-day moving average or swing low stops maintained through. Neither approach proves "wrong"—they represent different process choices trading opportunity against whipsaw risk. The critical element: systematic adherence to chosen methodology rather than reactive process-switching based on recent outcomes.

Why Do Only 5 Stocks Qualify When Markets Trade at Highs?

The ASX 200 trading near all-time highs creates misleading impression of broad market strength. Beneath index performance, market internals reveal substantial weakness: just 44% of stocks trade above 50-day moving averages despite headline strength. This concentration reflects mega-cap leadership dragging the index higher while mid-cap and small-cap momentum deteriorates.

Glover framed the challenge: "This should be incredibly easy when the market index, the XJO, the ASX 200, is at all-time highs. Except there's a massive disconnect. It is actually 20% harder than normal to find a good momentum trade on the market right now."

The concentration risk stems from market-cap weighting. When BHP, Commonwealth Bank, and CSL comprise substantial index weight, their stability or strength masks underlying breadth deterioration. The Momentum Profile reading from February analysis showed "smack bang in the middle, completely average, completely normal, which wouldn't be expected from the market at all-time highs."

This environment demands selectivity. Rather than diversifying across multiple mediocre setups, concentration in the 5 qualifying power plays offers superior risk-adjusted returns. Academic research detailed in sector filter analysis demonstrates that 60-73% of momentum returns derive from sector positioning rather than stock selection.

The current winners cluster in specific areas: commodities showing constructive continuation (EQR tungsten exposure), services benefiting from infrastructure activity (MSV, LAT), technology showing genuine growth (VBX), and resources avoiding exhaustion signals visible in precious metals.

The selectivity creates opportunity through focus. Minervini's philosophy aligns: "Diversification is definitely not going to protect. It's just going to dilute." When 95% of stocks fail power play criteria, avoiding false positives proves more important than capturing every marginal opportunity.

The 5-stock concentration reflects quality over quantity—each setup demonstrating explosive precedent rally, tight consolidation, institutional volume signatures, and sector or thematic support. This approach prioritises high-probability setups over portfolio diversification, recognising that in selective markets, concentrated positioning in proven patterns outperforms broad exposure to mediocre opportunities.

Frequently Asked Questions About ASX Power Play Stocks

What qualifies as a power play stock pattern?

A power play stock pattern requires four essential elements: (1) explosive rally exceeding 100% in compressed timeframe (weeks to months, not years), (2) tight consolidation showing price ranges contracting rather than expanding, (3) volume signature demonstrating heavy accumulation on rallies with minimal selling on pullbacks, (4) institutional participation evidenced through sustained volume above average during consolidation. Mark Minervini considers power plays his highest probability setup because they demonstrate supply exhaustion combined with persistent demand—the conditions preceding major continuation moves. The pattern differs from standard VCP formations through acceleration magnitude and consolidation brevity rather than extended base-building.

How do traders identify explosive momentum stocks ready to continue?

Identifying continuation candidates requires volume analysis combined with consolidation structure assessment. Gary Glover's framework centres on one question: "Are down days showing aggressive selling or supply exhaustion?" When pullbacks occur on 30-50% of average volume while rallies maintain 100-150% of average, it signals institutional holders maintaining positions despite normal volatility. The mathematical test: count the number of high-volume down days during consolidation. Zero to one high-volume down day suggests continuation; three or more suggests distribution. Additionally, consolidation should maintain proximity to short-term moving averages (10-day or 20-day)—sideways movement holding these averages demonstrates support at current levels rather than weakness requiring deeper corrections.

What volume signature predicts power play continuation most reliably?

The predictive volume signature shows three characteristics: (1) explosive volume during initial rally phase—often 200-400% of average daily volume confirming institutional accumulation, (2) progressive volume contraction during consolidation with each pullback showing lighter volume than previous pullback, (3) absence of high-volume selling days during consolidation—fewer than two days showing volume exceeding 150% of average with negative price action. Gary Glover emphasised: "Look at those down days there—no selling, and a buying stripe straight away again. That bar there is just like, no one wants to sell this stock." This volume behaviour distinguishes continuation from distribution patterns where consolidations show persistent selling pressure indicating institutional exit rather than accumulation.

Why do some explosive stocks continue while others become blow-off tops?

The critical distinction lies in consolidation behaviour following explosive advances. Continuation patterns show tight consolidation on declining volume—institutional accumulation creating supply exhaustion. Blow-off tops show loose consolidation on heavy volume—institutional distribution creating persistent selling pressure. The visual test: measure consolidation ranges as percentage of recent rally. Consolidations staying within 15-25% range of rally magnitude signal continuation; consolidations exceeding 40-50% range signal exhaustion. The volume test: count high-volume down days. Zero to one suggests continuation; four or more suggests distribution. Analysis of Life360's vertical move> demonstrates exhaustion characteristics while current power plays show continuation signatures.

How tight should consolidation be after 100%+ rallies in power play stocks?

David Ryan's research suggests optimal consolidation maintains price within 20% of recent highs while holding above the 10-day moving average throughout. Consolidations exceeding 30% retracement or breaking below 20-day moving averages demonstrate weakness rather than strength. The tightness manifests through progressively smaller daily ranges—initial consolidation days might show 3-5% intraday ranges, but optimal patterns see ranges compress to 1-2% as supply exhaustion completes. Mitchell Services exemplified this: "See how tight that stayed? Super tight, no volume. That's what David Ryan looks for—that really tight handle where volume just stays nice and tight, holds the 10 pretty much the whole time." Quantitatively, daily volatility should decline 40-60% from rally phase to consolidation phase.

What position sizing should traders use on extended power play stocks?

Position sizing adjustment accounts for distance from structural support and pattern-specific volatility characteristics. Standard Minervini methodology suggests 5-10% portfolio allocation for new positions. Extended power plays (stocks trading 30%+ above 50-day moving average) warrant 30-40% size reduction to 3-7% allocation, accounting for elevated pullback risk. IPO power plays require additional 30-50% reduction to 2-5% allocation due to elevated volatility and limited price history. Gary Glover specified: "If normally taking a 5% position size as a starter, on an IPO, probably cut that back to 3. If normally doing 10, maybe cut it back to 7." The rationale: preserve capital during false starts while maintaining exposure to potential multi-year trends if fundamental execution validates. Reference complete position sizing methodology for mathematical frameworks.

How do power play patterns differ from standard VCP patterns?

Power plays represent accelerated VCP formations emphasising explosive initial moves and brief consolidations rather than extended base-building. Standard VCPs develop through 2-4 contraction sequences over 8-16 weeks, showing progressive volatility compression before breakout. Power plays compress this sequence: explosive 100%+ rally in 4-8 weeks followed by 2-4 week tight consolidation before continuation. The volume signatures mirror VCP principles—accumulation on strength, dry-up on weakness—but occur across compressed timeframes. Entry timing differs: standard VCPs offer multiple entry opportunities as each contraction completes, while power plays typically provide single optimal entry at consolidation breakout. Risk profiles diverge: power plays show elevated whipsaw probability due to extension above structural support, requiring tighter stops and smaller position sizes. Success rates remain comparable when sector strength and volume signatures confirm, but power plays demand more precise execution given compressed price structures and reduced margin for error.

Key Takeaways: Trading ASX Power Play Stocks

Five ASX stocks currently demonstrate power play characteristics meeting Mark Minervini's highest probability momentum criteria: EQ Resources (tungsten/gold), Solstice Minerals (lithium services), Latitude 66 (mining services), Mitchell Services (engineering), and VBX (tech IPO). Each exhibited explosive advances exceeding 100% followed by tight consolidations showing minimal selling pressure—the volume signature indicating institutional accumulation persists despite consolidation duration.

The selective nature reflects current market structure: only 44% of ASX stocks trade above 50-day moving averages despite the ASX 200 near all-time highs. This concentration demands quality-focused positioning rather than broad diversification across mediocre setups. Gary Glover's framework emphasises volume analysis—"no selling on pullbacks"—as the critical distinction between continuation patterns and distribution formations.

Execution methodology combines precise entry timing (range-break above consolidation), defined risk management (stops below consolidation lows), and adjusted position sizing (reduced 30-50% for extended or IPO patterns). The "free carry" concept—moving stops to breakeven after profitable moves—eliminates risk while maintaining upside exposure, reflecting the asymmetric payoff structure fundamental to momentum trading success.

Academic research demonstrates that sector positioning determines 60-73% of momentum returns, making sector context critical even for technically perfect setups. Current power plays cluster in constructive sectors (tungsten, services, lithium, technology) while avoiding exhausted precious metals showing distribution characteristics.

The pattern's counterintuitive principle—biggest gains often follow rather than precede explosive moves—separates professional momentum traders from reactive participants who exit after initial surges. Patience through consolidation combined with systematic entry at breakouts positions traders for high-probability continuation moves when institutional accumulation completes.

Risk management through process consistency proves essential. Multiple traders viewing identical setups generate different results based on entry methodology, stop placement, and position sizing frameworks. Success derives from systematic adherence to chosen process rather than reactive adjustment based on recent outcomes—acknowledging that even highest-probability setups fail at rates requiring disciplined loss limitation.

Watch Gary Glover's weekly ASX momentum analysis for real-time power play identification and volume signature tracking across all ASX leaders.

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This article is extracted from an interview with Gary Glover (AR 259215) is an Authorised Representative of Novus Capital Limited (AFSL 238 168). Presenter may hold positions in discussed securities for educational demonstration purposes Educational Disclaimer: This content is for educational purposes only and does not constitute financial advice. Past performance is no guarantee of future results. Consider your financial situation and seek professional advice before making investment decisions.

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