Because of the broad market implications and forceful nature of new 52-week highs/lows, market technicians keep a close eye on this statistic. The field of technical analysis has designed a number of indicators to grade the underlying momentum created by the events driving the market in either direction. When shares of a publicly traded company hit a new high for the year, everyone involved can rest assured that things are on the right track. Not only are investors rewarded, but the work of the company’s CEO, executives and employees is validated. All this optimism in the business attracts new attention from traders and institutional investors looking to capitalize on the stock’s momentum.
Rallies from a new 52-week high can be explosive, picking up steam as traders migrate to stocks that are making a consistent profit. If the broader market begins to see many shares making new highs, that has the power to drive most everything up, squeezing short sellers and igniting a rally – perhaps even a new bull market. Of course, the opposite is also true. When a stock hits a new 52-week low, something at that business has definitely gone awry, resulting in angry investors. A new 52-week low could mean margins are being squeezed, customers are drying up, or a brand is shedding market share. The negativity can feed on itself as short sellers drive the stock lower and fund managers make the tough decision to take their lumps and wash their hands of a bad trade. Bear markets often begin after a business reports a disappointing performance, forcing down expectations for the broader market.
Integrated Device Technology Inc(NASDAQ:IDTI) stock traded at 52 weeks high level. It increased 3.02% to the closing price of $45.98. The stock showed weekly upbeat performance of 4.41%, which was maintained for the month at 4.38%. Likewise, the positive performance for the quarter was recorded as 14.63% and for the year was 49.63%, while the YTD performance remained at 35.55%.
Shares of Hormel Foods Corp(NYSE:HRL) traded at a 52 weeks high level during last trading session. The stock rose 2.45% to the closing price of $33.45. Its last month’s stock price volatility remained 3.29% which for the week stands at 2.55%. Its fifty two weeks range was $19.68 – $33.16. The total market capitalization remained at $6.36 B. This stock is ahead of its 52-week low with 69.97%.
MaxLinear, Inc.(NYSE:MXL) stock reached a 1-year peak price of $14.86. The stock has gained 1.65%, reaching at $14.75 after hovering between $14.66 and $14.92. This stock is ahead of its 52-week low with 50.74%. Its last month’s stock price volatility remained 3.12% which for the week stands at 2.81%. The stock showed weekly upbeat performance of 3.73%, which was maintained for the month at 5.51%. Likewise, the positive performance for the quarter was recorded as 7.19% and for the year was 37.23%, while the YTD performance remained at 22.41%.