How to use 52-week high/low levels in trading and bet on a trend

The 52-week high/low levels, wherein the stock or index crosses one-year high/low, are considered vital indicators in markets as breaching these levels are seen as a confirmation that the trend is likely to continue, with ferocity, in the respective direction.

Investors and traders believe that the stock crossing the 52-week high or low level has a firm underlying strength / weakness, which may lead to a secular movement in the counter.

In general, 52-week high represents a resistance level and 52-week low the support levels, and their breach is considered a key development.

Significance of 52-week high/low

-- The breakout