January 2, 2013/ The Analyst, Proshare
The 52-week price is an important indicator for many investors in determining the current value of a stock or predicting a trend in a stock's performance i.e. future price movement.
Market Analysts “keep a close eye on this statistic because of the broad market implications and forceful nature of new 52-week highs/lows”. For traders, it enables them to build positions in stocks hitting new highs (bullish) and sell them when the shares hit new lows (bearish).
Forces of Highs and Lows2
When shares of a publicly traded company hit a new high for the year, everyone involved can rest assured that things are on the right track. Not only are investors rewarded, but the work of the company's CEO, executives and employees is validated. All this optimism in the business attracts new attention from traders and institutional investors looking to capitalize on the stock's momentum.
Rallies from a new 52-week high can be explosive, picking up steam as traders migrate to stocks that are making a consistent profit. If the broader market begins to see many shares making new highs, that has the power to drive most everything up, squeezing short sellers and igniting a rally - perhaps even a new bull market.
Of course, the opposite is also true. When a stock hits a new 52-week low, something at that business has definitely gone awry, resulting in angry investors.
A new 52-week low could mean margins are being squeezed, customers are drying up, or a brand is shedding market share. The negativity can feed on itself as short sellers drive the stock lower and fund managers make the tough decision to take their lumps and wash their hands of a bad trade.
You could make a good argument that a stock at its 52-week high must be doing something right – it didn’t just get there for no reason. The chances that it will keep moving forward, even if it doesn’t follow an absolute straight line, are good since the market clearly likes what it has seen so far.
This is a more informed deduction than buying the stock off the 52-week low, since there is nothing to suggest a stock in the dumpster is going to ever come out.
We present below some of the stocks that created a new 52-week high on the NSE bourse as at December 2012.
You could also make an argument that, in the absence of other information, a selection from the 52-week low list makes as good a ‘guess’ as any.
The company you randomly pick off the 52-week low list may be a great bargain, beaten up by an unappreciative market, facing operating issues or caught up in some regulatory squeeze that may or may not be about to end.
For the high risk takers, a gamble might allow for the luxury to argue that a “bottomed out” company was more likely to go up than a company at the top was to continue its upward momentum.
Following are some of the stocks that created new 52-weeks low recently on the NSE bourse in 2012.
Below is the list of stocks showing the Current Market Price of the stocks, their 52 Week High / Low price levels and the dates on which those price levels were hit.
Read More on 52wk High/Low:
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