The 52 Weeks High/Low is a record on the price of the stock for the past 52 weeks. It is a record of the highest and lowest stock price the previous year that helps stock investors to monitor the current rate of their stock and when to invest.
What Is 52 Weeks High?
This is the highest price of a stock in the past 52 weeks. Knowing this price helps investors monitor and gauge the price the stock is likely to be sold for the next year. 52 Weeks High portrays good news. It shows that sales are currently up and profit from the sale is increasing. If the stock break through the 52 weeks high, profit and sales take a superb leap.
What Is 52 Weeks Low?
This is the most recent lowest price of a stock in the last 52 weeks. This aspect of 52 weeks High/Low is necessary to predict the next price of the stock. Take for instance, if the price of stock reduces to an X.Y rate, and then increases unexpectedly, the X.Y becomes a support level for the price of the stock. Hence investors would invest with the hope that their stock would experience a similar price. However, if a stock market increases for a given period of time and then suddenly dropped below a given X.Y, the X.Y becomes a price resistance.
Intra-Day 52 weeks Low Reversal
Should a stock reach a new 52-weeks low intraday fall but does not make a new closing fall price, this might be a sign of loss. To measure this, investors look out for when the price of stock forms a daily hammer candlestick. This is a situation whereby the price of stock reduces significantly than its opening price. When this happens, investors hunting for bargain seize the opportunity while the short-sellers struggle to maintain their position by buying more.
Intra-Day 52 Weeks High-Reversal.
When the price of a stock increase during the day but closes negative on the same day, this could be a sign of a topped out, that is, an indication that the price of a stock might not increase anytime soon. 52-weeks high is often used as a profit stop level to make more profits.
Read Also: To trade Forex or trade Stocks?