Shares of Cosan Limited NYSE:CZZ reached its 52-Week High in a recent trade, Soaring to $7.54.
A 52-week high indicates the highest price that a stock has traded at over the previous year. Traders and investors alike view the 52-week high as an important factor in determining a stock’s current value and predicting its future price movement.
When a stock trades within its 52-week price range, investors may show increased interest as price nears either the high or the low. Many stock traders like to buy when price goes above its 52-week high, the rationale being that if the price breaks out from the 52-week range, there will be enough momentum to make the price move in a positive direction.
Another strategy traders use is to sell when price reaches its 52-week high because they assume that the price will fall. Traders and investors also usually pursue technical and or fundamental analysis to confirm.
Some analysts surmise that buying a stock at its 52-week high is an intelligent strategy. Statistically speaking, there is validity there. This strategy also means that avoiding a stock at its 52-week low is a good idea.
It should be noted, however, that the 52-week time period is an arbitrary number based entirely on convenience. The 52-week period is mostly useful in identifying trends. A stock at its 52-week high means the trend is positive.
When looking at a large volume of stocks, studies show that buying stocks at its 52-week high is an effective predictor for above average growth moving into the future. It is not terribly reliable to apply this concept to just one or two stocks, however.
Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward. Analysts use common formulas and ratios to accomplish this.
Cosan Limited’s RSI (Relative Strength Index) is 66.41. RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.
Let’s take a look at how the stock has been performing recently. Over the past twelve months, Cosan Limited’s stock was 107.66%. Over the last week, it was 5.16%, 18.74% over the last quarter, and 66.94% for the past six months.
Over the past 50 days, Cosan Limited stock was 0.53% off of the high and 22.60% removed from the low. Their 52-Week High and Low are noted here. 0.53% (High), 210.22%, (Low).
Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
Cosan Limited - Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings with MarketBeat.com’s FREE daily email newsletter.