In stock market parlance, when a stock is said to be trending, that means more than just the fact that it’s going up in price. If a real trend is established, something other than regular market forces are at work.
Once a trend has been identified, it becomes a self-fulfilling thing. The early investors who started the trend may have had good fundamental reasons for buying in, but as a trend matures and catches the attention of the broad market, some investors – especially short-term traders – buy for the sole reason that the stock is trending. As a trend continues, it attracts more trend followers and can push the price up even further.
If you’re ready to take strategic advantage of current uptrends, check out this list of five stocks that are trending upward right now.
This post originally appeared at U.S. News & World Report.