Boeing Company (NYSE:BA), FuelCell Energy, Inc (NASDAQ:FCEL) and Sunrun, Inc (NASDAQ:RUN) are all trading higher in strong uptrends despite the S&P 500 trading in both a daily and weeky downtrend. An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.
The higher highs indicate the bulls are in control, while the intermittent higher lows indicate consolidation periods. Traders can use moving averages to help identify an uptrend with rising lower timeframe moving averages (such as the eight- or 21-day exponential moving averages), which indicate the stock is in a steep shorter-term uptrend. Traders can also use rising longer-term moving averages (such as the 200-day simple moving average) as an indicator of a long-term uptrend.
