What Is the 52-Week High and Low?
The 52-week high/low is the highest and lowest price at which a security, such as a stock, has traded over the prior 52-week period.
It is a measure used by investors to analyze a stock’s current price and help predict its future movements.
A stock may garner more attention from investors as it nears its 52-week high or 52-week low.
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How Stock Market High and Low Is Determined
The 52-week high/low is determined by the closing price of the security.
The price of a stock may very well fluctuate above or below its 52-week record over the course of a trading session, but if the price does not close above or below the record, the change does not register as having hit a new high or low.
Importance of 52-Week High and Low
Investors may use the 52-week high/low metric to determine an entry or exit point for a given stock.
Oftentimes, these fluctuations indicate to investors that a stock has reached its peak or bottom, and may not rise or fall in the near term.
For that reason, the 52-week high or low provides a level of resistance or support to a given security.
Alternatively, if a stock breaches it’s 52-week high and continues upward, this could indicate to investors that there must be some factors that have generated enough momentum to carry the price above its previous 52-week range.
They believe that the momentum will continue to push the price in the same direction, making this a good time to buy.
The same rationale can be applied when a stock dips below its 52-week low.
52-Week High/Low FAQs
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.