When a stock is touching 52 weeks high, it means that the stock has more upward potential and has broken all its resistance. There are no sellers on the top, and continuous buying has led it to reach the 52w high. The market stakeholders consider the stock to further give upmove returns.
This high is reached because of its fast performance over the business.
The investors in this stock from last one year all will be in profit and they may not sell the stocks, which will reduce supply which ultimately results in the increase in share price.
At 52w high there is less or no over head supply and new participants enter the stock.. so there are more chances of the stock price going high and high.
1. First and foremost reason is strength, this is the reason stock reached to 52 Weeks High.
2. at 52 Weeks high, all the people holding the stock are sitting at Profit and may not have reason to sell (especially serious investors). This will dry up Supply and demand will increase.
3. All recent previous resistance will become Support to push back the stock on upside
When a stock is touching 52 weeks high, it means that the stock has more upward potential and has broken all its resistance. There are no sellers on the top, and continuous buying has led it to reach the 52w high. The market stakeholders consider the stock to further give upmove returns.
This high is reached because of its fast performance over the business.
The investors in this stock from last one year all will be in profit and they may not sell the stocks, which will reduce supply which ultimately results in the increase in share price.
At 52w high there is less or no over head supply and new participants enter the stock.. so there are more chances of the stock price going high and high.
1. First and foremost reason is strength, this is the reason stock reached to 52 Weeks High.
2. at 52 Weeks high, all the people holding the stock are sitting at Profit and may not have reason to sell (especially serious investors). This will dry up Supply and demand will increase.
3. All recent previous resistance will become Support to push back the stock on upside
I think once it goes above 52 week high,no body is sitting in loss,so people dont want to sell it when they are in profit and try to ride it.
A major resistance is broken which later becomes a support strong
The company fundamentals are also
Few reasons:
Volume of the stock increases.
Technically the stock broke all the resistance. 52 week high should act as a support for a fresh rally.
Its trading at 52 week high as the stock is fundamentally good.