Scroll Top
Reviewed by Vishnava | Updated on Apr 02, 2024
What is a 52 Week High?
- A 52 week high, as the name suggests, is the highest price that the security/ stock has traded over a 52 week period i.e. a year. It is a technical indicator that is used to analyse the security’s current price. The 52 week high is also used to predict future movements as well.
- A 52 week high represents a bullish sentiment of the market.
- The 52 week time period is arbitrary and has been chosen out of convenience. However, this serves as a useful means of trend identification.
How is a Stock Market High Determined?
The 52 week high is determined by the closing price of the security. It is not as much as the fluctuation that matters in its calculation as opposed to it breaching the existing upper value of the stock. It is also interesting to note that it is not uncommon for the volume of trading to spike once the 52 week high barrier is crossed.
What are the Uses of 52 Week High?
- There are many uses to the concept of a 52 week high such as determining the entry or exit point of a given stock, the level of resistance provided to the security, etc. It a chance to the investor to make his or her investment decision in an informed manner with sufficient cues about the direction of the market and in particular the position of the stock.
- These fluctuations also indicate to the investor that the stock has reached its peak and may not rise any further in the near future. This implies that reaching a 52 week high intraday and then closing negative on the same day indicates that the price may not go up any time in the near foreseeable future.
- Stock brokers and institutions use the 52 week high to set take profit orders as a means of locking gains.
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. As risky as this may sound, the results can be quite rewarding too.
Popular Topics
Latest Articles
CONTENTS
- What is a 52 Week High?
- How is a Stock Market High Determined?
- What are the Uses of 52 Week High?
- Effect of 52 Week High on Stocks
Products
Individuals
ClearServices
Resources & Guides
GST Resources
ITR Resources
Mutual Fund Resources
Tools
TRENDING MUTUAL FUNDS
ICICI Prudential Technology Fund Direct Plan Growth
Tata Digital India Fund Direct Growth
Axis Bluechip Fund Growth
ICICI Prudential Technology Fund Growth
Aditya Birla Sun Life Tax Relief 96 Growth
Aditya Birla Sun Life Digital India Fund Direct Plan Growth
Quant Tax Plan Growth Option Direct Plan
SBI Technology Opportunities Fund Direct Growth
Axis Long Term Equity Fund Growth
TOP AMCS
STOCK MARKETS
Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.
Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.
CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.
Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.
Cleartax is a product by Defmacro Software Pvt. Ltd.
Company PolicyTerms of use
ISO 27001
Data Center
SSL Certified Site
128-bit encryption
