Predicting the movement of a stock can be difficult, but tools like the 52-Week High/Low help by monitoring the history of activity on various stock trades. This historical data can be used to later predict any future volatility of the stock. Investors can use the chart to decide when to buy or sell. Stock traders employ several strategies utilizing the 52 Week chart.
- Strategy One: Buy a stock when the price of that stock exceeds the 52-week high record, also, this works in the converse. Sell the stock when the price is lower than the 52 week low. This technique assumes that if the price takes off in either direction there will be enough change and movement to continue to trend to the benefit of the trader.
- Strategy Two: Sell a stock when the price is above its 52 week high assuming that the stock will recede. This also works when buying after a stock reaches its 52 week low with the assumption that the stock will have a value play.
Traders will occasionally use additional tools and data to confirm the thoughts and opinions.
Foot Locker (NYSE: FL)
This stock traded at a low level for most of the last session. It experienced a gain of 1.92% with a closing cost of $67.33. During the last trading session, NYSE: FL experienced a total trading volume of 4.12 million shares. The 52-week range for the stock was between $46.540 and $66.48. Market capitalization was $9.38 billion.
Black Knight Financial Service (NYSE:BKFS)
This stock traded at a low level for most of the last session. It experienced a gain of 2.17% with a closing cost of $30.66. During the last trading session, NYSE: BKFS. The stock was up with a weekly gain of 1.83%. The total yearly performance ended at 10.57%.
Entravision Communications (NYSE: EVC)
This stock traded at a low level of $8.50 for most of the last session. It also fell during trading a total of 2.31%. The 52-week range for the stock was between $8.30 and $8.65. The later showed improved performance with a total of 2.18% and was able to maintain it for a month.
Zulily Inc. (NASDAQ: ZU)
This stock experienced a significant downgrade of short interest. The shorted interest totals 13,303,469 shares. This shorted interest amounted to -10.2%. The daily trading volume was 1,599,758. This stock is an example of shorting the stock, which is a hedging strategy.