Ten Entertainment stock price hits new high in 52 weeks

Shares in Ten entertainments (LON:TEG) are currently trading near a 52-week high, with the share price up around 4.82% at 272p over the past week. On a monthly basis, the Ten entertainments the price has gone up 10.3%.

For investors holding the stock (or considering buying it), the question is: and now?

The 52 week highs are a popular market indicator. But research shows that investors may wonder whether they should sell the shares and take a profit Where buy more and ride the uptrend. With that in mind, here’s a rundown of what you need to know about stocks reaching “new highs”…

What happens when a stock hits a new high?

The 52 week highs are always good news. But surprisingly, the prices of the best performing stocks can be slow to move when they release positive earnings news.

Research shows this happens because investors are cautious about bidding higher on performing stocks (even if they deserve it). Psychologists call it anchoring. As humans, we tend to take our time when it comes to changing our minds in the face of new information, even when it’s good news.

This emotional tussle often ends with the price rising to the “new high” over the coming weeks and months. The upward trend is called “post-earnings drift”. As the news breaks, the momentum takes over and the price rises.

What does this mean for potential investors?

With Ten entertainments business near a 52 weeks high, investors in the market may be unsure of where the price will move next. It is important to remember that momentum in itself is not a guarantee of future returns.

To get a better idea of ​​whether this trend is continuing, it’s worth doing some research for yourself. Indeed, we have identified some areas of concern with Ten Entertainment which you can read about here.