The 52-week high is the highest price a stock has traded at over the past 52 weeks or year. This indicator is used to evaluate the recent performance of stocks and also to predict future movements.
The 52-week high is an entry point for those looking to invest for the long term and can also be an exit point for existing investors looking to profit.
The stock of a company that has reached a 52-week high should have the strong fundamentals that have driven the stock to such heights. Consistent growth in revenue, growth in profit and growth in market share are some of the characteristics of such stocks.
Stocks that hit 52-week highs show strong buying interest among investors.
The stock may reach a 52-week high due to the positive developments of recent years, which could trigger an upward movement in the share price.