52-Week High

The 52-week high is the highest price at which a stock has traded during the past year. This rolling figure updates daily as new highs are established or as older highs drop out of the 52-week window. It represents the peak of investor enthusiasm and valuation during the recent past.

Stocks approaching or exceeding their 52-week highs often receive significant market attention. Breaking through to a new high can signal strong momentum and trigger additional buying from momentum-focused investors and algorithms. Conversely, repeatedly failing to break through the 52-week high can indicate resistance and waning bullish sentiment.

The 52-week high serves multiple analytical purposes:

• Momentum indicator: Stocks making new 52-week highs are demonstrating strong relative performance
• Resistance level: Previous highs often act as psychological barriers where selling pressure increases
• Benchmark for gains: Investors can measure how close they are to peak portfolio values
• Screening criterion: Many momentum strategies specifically buy stocks hitting new highs

The percentage distance from the 52-week high provides context:

Distance from High = (52-Week High - Current Price) / 52-Week High × 100%

For instance, if the 52-week high is $100 and the current price is $85, the stock is 15% below its high: ($100 - $85) / $100 = 15%. A stock trading at its 52-week high has 0% distance.

Research has shown that stocks near their 52-week highs often continue outperforming in the short term, a phenomenon sometimes called the "52-week high effect." However, buying solely because a stock is at highs can be risky—prices can reverse sharply, especially if the rally was driven by speculation rather than fundamentals. Always consider valuation and business quality alongside technical price levels.