Quick Definition

The 52-week high/low refers to the highest and lowest prices at which a stock has traded during the previous 52 weeks.

Examples

• 1A stock that reaches a new 52-week high may be considered by investors as having strong momentum and a potential buy signal.
• 2If a stock hits a new 52-week low, it might be viewed as undervalued or facing significant challenges, prompting investors to sell or avoid buying.
• 3Investors might use the 52-week high as a benchmark to set sell orders, ensuring profits are taken before potential declines.
• 4Traders often watch stocks nearing their 52-week lows in a declining market to identify potential buying opportunities for a rebound.

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