What's the Percentage off the 52-Week High or Low? (2024)

FAQs

What's the Percentage off the 52-Week High or Low? ›

The "percentage off the 52-week high or low" refers to when a security's current price is relative to where it has traded over the last 52 weeks. This gives investors an idea of how much the security has moved in the last year and whether it is trading near the top, middle or bottom of the range.

The 52-week high and low can be useful for several trading strategies. For example, when the price manages to rise above the 52-week high, then it might signal a breakout, prompting the traders to buy. Similarly, if the price falls below the 52-week low, it could indicate an opportunity to sell.

The 52-week high/low is the highest and lowest price at which a security has traded during the time period that equates to one year and is viewed as a technical indicator. The 52-week high/low is based on the daily closing price for the security.

Current Price Relative to 52-Week Range

Suppose over the last year that a stock has traded as high as $100, as low as $50 and is currently trading at $70. This means the stock is trading 30% below its 52-week high (1-(70/100) = 0.30 or 30%) and 40% above its 52-week low ((70/50) – 1 = 0.40 or 40%).

52 Week Price Percent Change (%) This is the percentage change in the company's stock price over the last fifty two weeks. Volume (3 Month Average) (Mil) This is the monthly average of the cumulative trading volume during the last three months.

Effect of 52 Week High on Stocks

A 52 week high shows that there is a strong chance of significant gains ahead. It often nudges investors to buy more securities of the company.

When good news has pushed a stock's price near or to a new 52-week high, traders are reluctant to bid the price of the stock higher even if the information warrants it. The information eventually prevails, and the price moves up, resulting in a continuation.

Investors generally consider 52-week high as a good criterion to determine an entry or exit point for a given stock. However, stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.

When a stock hits its 52-week low, traders tend to sell these stocks. 52-week lows are used to apply trading strategies. For example, a NIFTY 52 week low can be used to find an exit point for that NIFTY stock. A trader is most likely to sell a stock when its price exceeds the 52-week low mark.

Is 52 week low a good indicator? ›

The buyers looking for stocks to invest in may choose to buy the 52-week low stock assuming that the stocks are currently undervalued and thus make a good buy. In this case, you can say that the stock price is likely to establish a downward trend with a price lower than the previously recorded 52-week low.

The "percentage off the 52-week high or low" refers to when a security's current price is relative to where it has traded over the last 52 weeks. This gives investors an idea of how much the security has moved in the last year and whether it is trading near the top, middle or bottom of the range.

When the stock price trades reach and close near its 52-week high, the traders expect that the price will trade lower in the future as the 52-week high is considered the resistance level. As a result, many traders book their profits because they believe that the prices may reverse from the resistance level.

A figure recorded as the highest/lowest price of the security, bond or stock over the period of past 52 weeks is generally referred to as its 52-week high/ low.

Quick overview: One calendar year has 365 days, divided into 7-day weeks. Divide the number of days in a year (365) by the days there are in a week (7): A year has on average 52.143 weeks = 52 weeks plus one day.

Advantages of investing in 52 Week Low Stocks

Investing near the 52-week low provides a favorable risk-reward ratio, allowing for potential gains with limited downside risk.

The 52-week high/low serves as a benchmark for a stock's performance over a significant period. By comparing the current price with the 52-week high/low, investors can gauge how well the stock is doing relative to its own history.

The New 52-Week High/Low indicates a stock is trading at its highest or lowest price in the past 52 weeks. This is an important indicator for many investors in determining the current value of a stock or predicting a trend in a stock's performance.

When a stock hits its 52-week low, traders tend to sell these stocks. 52-week lows are used to apply trading strategies. For example, a NIFTY 52 week low can be used to find an exit point for that NIFTY stock. A trader is most likely to sell a stock when its price exceeds the 52-week low mark.