52 WEEK low/high

many websites display 52 week low/high …what is the use of such thing and how to practically make use of it?

52 week high low just gives a perception of how the stock is trading with respect to last 1 year price history. There are many ways to look at it -

  1. Fundamentally good stocks trading at 52 week low level may be a good buy

  2. Fundamentally bad stock trading at 52 week low level simply indicates the investor communities aversion to buy

  3. Stock reaching 52 week high indicates the inherent strength, one looks at it as an opportunity buy with a hope the stock price can go higher

  4. Stock reaching 52 week high can indicates over reaction by bulls, one can look at it as an opportunity to book profits

The point is, there are many ways to look at this data point. It really depends on the context and stock under consideration.

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