Is it possible that a stock price will increase next day if it reached its 52 week low the previous day

The likelihood of a stock price increasing the next day after hitting a 52-week low the previous day is generally low. This conclusion is based on the following points:

1. Market Reaction and Expectations: When a stock reaches a 52-week low, it often signals a negative event or a shift in market sentiment. This can lead to further selling pressure rather than buying, as investors may see it as a sign of continued downward trend.
2. Support and Resistance Levels: The 52-week low can act as a support level, meaning the stock may find a floor at this price. However, this does not necessarily imply an immediate rebound. The stock may continue to fluctuate or even decline further before potentially reversing course.
3. Historical Trends: Backtesting shows that hitting a 52-week low does not consistently predict a positive outcome. The impact on the next day's percentage change is variable and does not show a strong tendency towards increase
4. Technical Analysis Perspective: Traders often view the 52-week low as a point of potential reversal, but this is not a reliable indicator of an immediate uptrend. The stock may remain range-bound or even continue to decline after hitting a low.

In summary, while there is a chance that a stock might rebound after hitting a 52-week low, it is not a reliable indicator of an immediate increase. The next day's performance will depend on a range of factors, including overall market conditions, company fundamentals, and investor sentiment.