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If you've ever found yourself feeling increasingly drawn to a stock that's constantly rising in price, you are not alone...
Since the dawn of the stock market, speculators have been captured by the tendency of prices to 'trend'.
When prices move in one direction the allure of not missing out in an uptrend or of throwing in the towel in a downtrend is often too great to resist. As a result, prices can continue to trend beyond fair value in either direction.
With that in mind, shares in Safestore Holdings (LON:SAFE) have been in an uptrend in recent months, and the question now for investors is whether that price strength will continue.
Knowing what drives relative strength in share prices can help you find profitable momentum trades...
How has the Safestore Holdings (LON:SAFE) share price performed?
In terms of relative price strength the stock has performed well against the market over the past year:
1 Month: 11.6%
6 Months: 16.2%
12 Months: 46.1%
Relative strength is a useful tool in the armoury of technical traders and investors. It’s an instant measure of how a stock has performed in comparison with a benchmark.
And while there are no certainties about which way a stock will move next, research shows that price trends like this often persist.
Studies by leading experts on momentum show that stocks with the strongest price strength tend to keep up the pace for anywhere up to one year as investors increasingly buy in to them.
Safestore Holdings is currently among the stocks with the strongest six-month and one-year relative price strength in the market. A look at its StockReport could offer more insight into what’s driving the momentum in its share price - and whether that might continue.
To find more stocks like Safestore Holdings, you'll need to equip yourself with professional-grade data and screening tools. This kind of information has traditionally been closely guarded by professional fund managers. But our team of financial analysts have carefully constructed this screen - Stockopedia’s Price Momentum - which gives you everything you need. So why not come and take a look?