In Stock Market, Is There A Scenario Where The Opening Price Is Higher Than The High Of The Day?
That is impossible... If the opening price is the highest price of the day, then it will be recorded as the high of the day... This will result in a candlestick (on a stock chart) with no upper wick.
What made you ask this question? Did you come across data that supported an opening price that appeared higher than the h.o.d.?
You mean the high of the previous day, I'm assuming? In that case, no.
However, you can buy a stock, bond, commodity or whatever at whatever a seller is willing to part with in exchange for what you're offering. You can buy at a higher price than what the high was on the previous day's trading, just as you can buy at a lower price. If you buy at the higher price, momentarily there will be a recorded change reflected by what you paid, which may soon be changed if someone buys for a higher price than you.
It is possible depending on what data feed you are looking at. On NYSE issues (NYSE only trading), there are trades that are done on a third market outside of the NYSE (think ECN like ARCA). In a name such as IBM trades start right at 9:30am EST even before the stock is open on the NYSE, The consolidated tape shows all trades, but on the open of the market on the NYSE the stock often opens after 9:30AM EST, when the opening cross is posted. It is entirely possible that many third market prints happen BEFORE this official NYSE open, and it is possible that those are above this open, which might be the high for the day NYSE only. The key here is there is the official NYSE open, and then the first print open, which are often very different prices. However, the high of the day would reflect the trades that happen prior to the NYSE open, but if you were trading with the specialist only, its possible those prints are above (or below) the high/low traded for the day on the NYSE only.
Do you mean "high of the day" as in the highest price of the previous day? If so, the answer is yes, a stock, or market index like the S&P 500 or DOW Jones, can open at a price higher than the high of the previous day. Whenever the opening price is higher or lower than the closing price of the previous day, it is called a gap. There are limits, but a gap can be small or large, and depending on what the previous day's high was, a big gap in the next day's price can easily be higher than the previous day's high.
by ngureco3 years ago
In the stock market, can the open price be higher than the high of the day?And likewise, can the open price be lower than the low of the day?
by Jyoti Kothari6 years ago
In which stocks should one invest at present scenario?
by ngureco3 years ago
Which Are The Best Trading Strategies In The Stock Market?
by scottie g5 years ago
Do you think real estate prices in your market will be higher or lower in 1 year?Please include your area of the country or closest major city
by Suzanne Levac7 years ago
I just heard that it is very probable that the gas will go up to $5.00 a gallon in the near...future in the United States; do you think it will happen? And why is it going up that much?
by Zara Rasul2 years ago
Is it possible to invest as little as $20 in the stock market?How does one invest a small amount regularly in the US stock market? What is the best way to do this?
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.