By now youโve heard the term โbuy low, sell highโ ๐ง
But how do you tell when a stock is low or high? ๐ค
Check the 52 Week Low/High! You can find it in the "Key Stats" section of your favorite stock on Bloom ๐
Now letโs explore what it means ๐
52 week low = lowest price of the stock in the past 52 weeks ๐
If the price is near the 52 week low, then itโs potentially undervalued ๐ฆ
But, it could also mean the company isnโt doing well ๐ค
52 week high = highest price of the stock in the past 52 weeks ๐
If the price is near the 52 week high, then itโs potentially overvalued
But, this could also mean the company is doing super well ๐
Always compare the current stock price with the 52 week low/high, and get a sense of where it's at compared to the low/high! ๐
After you compare the current stock price, try to reason the value
Good news like product launches and strong profits can lead to higher prices ๐
Bad news like delayed products and layoffs can lead to lower prices ๐
It's important to research the stock further and not rely solely on the 52 week low/high to make investment decisions ๐ค
But, now you know how to tell if a stock is at its low ๐ or high ๐