Stocks Down From 52-Week High
The distance from a stock's 52-week high is the cleanest single measure of "how on sale" it is. The agent targets blue-chip names trading 15%–30% below that high — deep enough to matter, shallow enough that the trend is usually intact.
The discount bands
- 0%–10%: not a meaningful pullback
- 10%–15%: shallow, monitor
- 15%–30%: target zone — staged entries
- 30%–45%: deeper, check for thesis damage
- Below -45%: usually a broken thesis, not a buy
Why deeper isn't always better
A 50% drawdown in a blue-chip name usually means revenue contraction, margin collapse, regulatory shock, or accounting concerns. The agent's red-flag penalty (-20 pts) downgrades these even when RSI looks "attractive."
Pullback alone is not a signal
A stock down 20% from its high still needs oversold technicals, support nearby, fundamentals intact, and reasonable valuation to score as a Stage 1 starter or higher.
Pullback scoring weight
Distance from the 52-week high is worth 20 of the agent's 100 points — the largest single category alongside fundamentals and oversold technicals.
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Use the BlueChip Pullback Agent to screen 130+ blue-chip stocks for pullback, RSI, Bollinger Band, moving average support, fundamentals and valuation.
Research and educational tool. Not investment advice. See our disclaimer.