Benzinga - The most overbought stocks in the real estate sector presents an opportunity to go short on these overvalued companies.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.
Here’s the latest list of major overbought players in this sector.
Redfin Corporation (NASDAQ: RDFN)
Redfin, during November, posted a Q3 loss of $0.83 per share. The company’s stock has a 52-week high of $32.30 .
RSI Value: 78.70
RDFN Price Action: Shares of Redfin gained 15.9% to settle at $8.67 on Wednesday and added 4.8% in after-hours trading.
Opendoor Technologies Inc. (NASDAQ: OPEN)
Opendoor Technologies, during November, posted upbeat quarterly sales. The company’s stock has a 52-week high of $11.39.
RSI Value: 76.91
OPEN Price Action: Shares of Opendoor Technologies jumped 9.6% to close at $2.40 on Tuesday and added 5.8% in after-hours trading.
Compass, Inc. (NYSE: COMP)
Compass recently implemented a further workforce reduction. The company has a 52-week high of $9.1850.
RSI Value: 70.58
COMP Price Action: Shares of Compass rose 9.7% to close at $4.41 on Wednesday and lost 0.5% in after-hours trading.
Douglas Elliman Inc. (NYSE: DOUG)
Douglas Elliman named Todd Bourgard as Chief Executive Officer of Long Island, Hamptons And North Fork. The company’s 52-week high is $8.49.
RSI Value: 71.10
DOUG Price Action: Shares of Douglas Elliman gained 5.2% to close at $4.90 on Wednesday and lost 0.1% in after-hours trading.
Ashford Hospitality Trust, Inc. (NYSE: AHT)
Ashford Hospitality Trust, during November, posted Q3 FFO of $0.52. The company has a 52-week high of $12.09.
RSI Value: 75.30
AHT Price Action: Shares of Ashford Hospitality Trust rose 3.3% to settle at $7.12 on Wednesday and added 0.7% in after-hours trading.
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