52-week low

A 52-week low is determined by the lowest closing price a stock has achieved over the past year. Daily price fluctuations are considered, but only the closing price is factored in. If a stock reaches or dips below this level during the day but closes higher, it is not counted as a new 52-week low. Traders closely monitor these levels as they can indicate potential for reversals or further decline.

The 52-week low list is crucial for identifying undervalued or underperforming stocks. Traders may use this indicator to strategise entry and exit points, especially for short selling or bargain buying. A stock hitting multiple 52-week lows can trigger a reversal, signalling an opportunity for traders to cover short positions or for buyers to capitalize on lower prices. Patterns like hammer candlesticks around these levels can also hint at market rebounds.