Objective research to aid investing decisions
Menu
Value Allocations for November 2019 (Final)
Cash TLT LQD SPY
Momentum Allocations for November 2019 (Final)
1st ETF 2nd ETF 3rd ETF

The 52-Week High as a Momentum Indicator for Individual Stocks

Posted in Momentum Investing, Technical Trading

A reader notes and asks: "It is frequently said that stocks at 52-week highs are the most likely to outperform in the future. Is there any academic evidence to support this assertion?" In their October 2004 Journal of Finance article entitled "The 52-Week High and Momentum Investing", Thomas George and Chuan-Yang Hwang examine the explanatory power of the 52-week high in the context of momentum investing. They compare the 52-week high as a momentum indicator to benchmark momentum strategies that employ six months of past returns to forecast six months of future returns. Using price data for a broad range of stocks over the period 1963-2001, they find that:

Please or subscribe to continue reading...
Gain access to hundreds of premium articles, our momentum strategy, full RSS feeds, and more!  Learn more

Daily Email Updates
Login
Research Categories
Recent Research
Popular Posts