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A 52-week high refers to the highest price a stock has reached in the past year. It serves as a technical indicator for traders and investors to gauge a stock’s momentum and potential price direction. Stocks nearing this level often attract attention as investors may see them as reaching a resistance point, signalling possible selling or further growth if the price breaks through this level.
A 52-week high is calculated using the stock’s closing prices over the last year. Although a stock may touch its highest value during the day, only the closing price is considered for this indicator. If a stock approaches its 52-week high but doesn't close above it, analysts closely observe its movement, as this could indicate volatility or potential for a breakout.
The 52-week high list signals a bullish sentiment in the market, as stocks reaching these highs often show strong performance. Investors use this list to identify potential entry or exit points for trades, especially for stocks breaking through their 52-week range. Highs also tend to increase trading volume, particularly in small- and mid-cap stocks, offering traders valuable insights for decision-making.
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