The 52-Week High/Low: A Comprehensive
Guide
A
stock passes through various prices in its lifetime. The valuation of a current
price of the stock is generally done by investors based on its price movement
in the last year or 52 weeks period. The movement in stock during its last 52
weeks helps in predicting the future movement of the stock price.
What is 52 Week's High and Low?
The 52-week
high is the price of a stock when it touches its highest price within the period
of the past 52 weeks. Similarly, 52 weeks low is the lowest price of a stock
during the past 52 weeks. The volume activity in any stock increases when the
stock touches a new 52-week high or low.
Things Investors Do When Stock Hits 52
High or Low
Each
investor has its style of investing. However, if you are a value investor and
see the stock at its 52-week low price, it might be a buying opportunity. Since
the stock is at a low price, a value investor will feel there is room for the
stock to grow. On the other hand, a momentum investor will pick a stock at 52
weeks high for investment. This strategy is known “relative strength strategy”
suggesting that stock at a high will touch a new high while stock at a yearly
low price will hit now low price. Value investors do not monitor the market
regularly while momentum investors are always active in the stock market.
Whether
you are a value investor or momentum investor, reviewing the 52-week high and
low price of a stock can give you important information. If you want to learn
the art of picking the right stocks in the stock market you may get in touch
with Indira Securities and open a demat account. Our experts and professionals
will help you in learning fundamental and technical analysis. It will help you
to grow in the stock market and become a successful investor.