52 Week High

In stock markets, ‘52 week high’ holds significance and is used extensively by technical traders. 52 Week high is the highest price point that a stock has traded at, over a 52 week or one year time period.

What are the key features of 52 Week high?

Key Highlights of 52 Week high are:
1. 52 Week high is read along with the volumes as chances of stock gaining further momentum increase after hitting 52 Week high.
2. It gives technical as well as fundamental investors an indication about entry/exit prices and also key support and resistance levels.
3. It is calculated on a daily basis on closing share price.
4. Some traders/investors take it as a buying indicator while others take it as a selling indicator with no further upside potential.

Why is the metric of 52 Week high used in stock markets?

Significance of 52 Week high:
a) It helps in predicting future prices.
b) A 52 Week high stock price indicates that the stock is in a bullish phase.
c) It is not a mathematical indicator but has become a good measure of price trend.