52-week high and low

The 52-week high and low are the highest and lowest prices a stock has traded at over the trailing twelve months. Every brokerage platform and financial data site displays these two numbers next to the current price, giving an instant sense of where a stock sits relative to its own recent range rather than in absolute terms.

Both figures matter to different types of investors. A stock trading near its 52-week high is often read as a sign of strong momentum, since it means buyers have been willing to pay progressively more for it over the past year. Some momentum traders specifically look for stocks breaking above their 52-week high on the idea that a new high with no prior sellers overhead can attract further buying. A stock near its 52-week low draws the opposite crowd, investors screening for names that have fallen out of favor and may be undervalued, though a stock near its low can just as easily be reflecting a genuine deterioration in the business rather than a bargain.

The 52-week high in particular tends to act as a psychological level. Investors who bought near that prior peak and are underwater on the position often sell once the price climbs back to their entry point, just to get out even, which can create a temporary ceiling of selling pressure right around the old high. Because the window is trailing, both numbers update continuously as old prices roll off the back end and new prices roll on, so a 52-week high or low from six months ago is no longer part of the current figure.