Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Dec. 27, 2023, three stocks in the real estate sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
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, according to Benzinga Pro.
Here’s the latest list of major overbought players in this sector.
Compass, Inc. (NYSE: COMP)
- On Nov. 6, Compass posted weaker-than-expected third-quarter results. The company’s stock jumped around 70% over the past month and has a 52-week high of $5.1590 .
- RSI Value: 81.17
- COMP Price Action: Shares of Compass gained 5.2% to close at $3.67 on Tuesday.
- On Nov. 2, Redfin reported third-quarter GAAP losses of 17 cents per share, beating the analyst consensus estimate of losses of 20 cents per share. Redfin CEO Glenn Kelman said, "In a worsening housing market, Redfin earned an adjusted EBITDA profit, a $59 million improvement over the third quarter of 2022, all while growing traffic and gaining share." The company’s stock gained around 44% over the past month and has a 52-week high of $17.68.
- RSI Value: 70.22
- RDFN Price Action: Shares of Redfin gained 5% to close at $10.10 on Tuesday.
- On Nov. 7, Douglas Elliman posted a narrower-than-expected quarterly loss. The company’s stock jumped around 80% over the past month and has a 52-week high of $5.0190.
- RSI Value: 81.26
- DOUG Price Action: Shares of Douglas Elliman gained 5.4% to close at $2.94 on Tuesday.
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