What is a Record Low?
A record low is the lowest price a security achieves in a given time period.
How Does a Record Low Work?
For example, let's look at this random chart for Cicso Systems (CSCO). note the jagged line, which reflects the stock price. For this period, the record low is approximately $23 (at the beginning of the chart). Note that a record can relate to a year, a month, a week, or even just one trading day, so it is important to understand the period of time to which a record corresponds.
Why Does a Record Low Matter?
Record lows usually correspond with bad news about and less interest in a company. Additionally, they often trigger considerable selling volume, which can drive a stock price even lower. Accordingly, many traders are keenly aware of which stocks are approaching record highs and lows.
