52-Week High/Low

What is a '52-Week High/Low'

A 52-week high/low is the highest and lowest price that a stock has traded at during the previous year. Many traders and investors view the 52-week high or low as an important factor in determining a stock's current value and predicting future price movement.

BREAKING DOWN '52-Week High/Low'

As a stock trades within its 52-week price range (the range that exists between the 52-week low and the 52-week high), investors may show increased interest as price nears either the high or the low. A popular strategy used by stock traders is to buy when price exceeds its 52-week high, or to sell when price falls below its 52-week low. The rationale behind this strategy is that if price breaks out from the 52-week range (either above or below) there will be enough momentum to continue the price move in a favorable direction.

Alternatively, another strategy is to sell when price reaches its 52-week high on the assumption that price will recede, or to buy when price reaches its 52-week low in anticipation of a value play. Traders and investors typically conduct additional technical and/or fundamental analysis for confirmation.

RELATED TERMS
  1. 52-Week Range

    The lowest and highest prices at which a stock has traded in ...
  2. High-Low Index

    An index that seeks to provide confirmation of a market trend ...
  3. Hindenburg Omen

    A technical indicator named after the famous crash of the German ...
  4. Market Breadth

    A technique used in technical analysis that attempts to gauge ...
  5. Opening Range

    The highest and lowest prices of a security during the first ...
  6. Darvas Box Theory

    A trading strategy that was developed in 1956 by former ballroom ...
Related Articles
  1. Investing

    NASDAQ Posts 2016 High

    The NASDAQ 100 posted a new high for 2016 on the back of rallies in the S&P 500 and DJIA
  2. Investing

    3 Consumer Staples Stocks Near Their 52-Week Highs Worth Selling (MCD, SBUX)

    Discover three consumer staples stocks trading near their 52-week highs, and explore why it might be a good option to sell them in 2016.
  3. Trading

    5 Ways to Identify 2016 Dow Laggards

    These five simple methods will sort 2016 Dow components into leader and laggard lists, allowing analysis of broader market conditions.
  4. Investing

    Stocks Reach 52-Week Highs During S&P 500 Rally

    The S&P 500 rising tide lifted these stocks to new highs.
  5. Investing

    Dow Jones Industrials Reach All-Time High (JNJ, GE)

    The Dow followed the S&P 500 into record territory yesterday. Here are some stocks that benefited from the upside.
  6. Investing

    3 Stocks Near Their 52-Week Lows

    Discover some stocks that are currently trading near their 52-week lows, which may be undervalued and offer a good buying opportunity for investors.
  7. Investing

    3 Financials Stocks Near Their 52-Week Lows Worth Buying (AXP, DFS)

    Identify several financial sector stocks trading near their 52-week lows that might be worth buying.
  8. Investing

    3 Industrials Stocks Near Their 52-Week Highs that Are Worth Selling (HON, GE)

    Identify three companies in the industrial sector whose stocks are trading near their 52-week highs and, therefore, might be worth selling.
  9. Trading

    3 Key Signs Of A Market Top

    Learn the best ways to foresee market corrections and how to profit from them.
  10. Managing Wealth

    The 2 Financial Stocks You'll Wish You Bought in 2015

    Learn about the financial sector and the companies that operate within the sector. Understand why the two best-performing finance stocks performed well in 2015.
RELATED FAQS
  1. What is the "percentage off the 52-week high or low"? How is this calculated?

    The "percentage off the 52-week high or low" refers to when a security's current price is relative to where it has traded ... Read Answer >>
  2. How can I use market breadth to my advantage?

    Market breadth is a study that compares the number of companies on a given exchange that have created new 52-week highs to ... Read Answer >>
  3. What types of data are necessary to make a technical analysis?

    Understand what technical analysis is, the basic theory behind employing it and what data inputs are needed to conduct it. Read Answer >>
  4. If I believe retail sector companies are overvalued how can I profit from a fall ...

    Examine the various trading strategies that can be employed by an investor who anticipates a decline in stock prices in the ... Read Answer >>
  5. How should orders be placed when trying to buy a bounce on a stock?

    Buy stocks on a temporary pullback in price to acquire them at a price level that should be profitable when the stock resumes ... Read Answer >>
  6. How do traders implement the Buy a Bounce Strategy?

    Learn how traders execute the buy a bounce strategy for a security that has reached an important support level. Find out ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center