Investors are often wary of stocks trading at or near new highs. That’s natural: If a stock has recently had a big run-up in price, it’s easy for investors to feel that they’ve missed the boat — or put another way, that there’s nowhere to go but back down.
Sometimes, though, a stock trading at a new high is just beginning its run-up. In fact, some investors have learned that (with certain stocks, anyway) a new high might be a buy signal, a sign that something has recently changed for the better.