Benzinga - by Lisa Levin, Benzinga Editor.
The most overbought stocks in the consumer discretionary 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.
TAL Education Group (NYSE: TAL)
- TAL Education Group is expected to release its unaudited financial results for the second quarter of fiscal year 2024 ended Aug. 31, 2023, before the opening bell on Oct. 26, 2023. The company’s stock has a 52-week high of $10.45. .
- RSI Value: 74.73
- TAL Price Action: Shares of TAL Education rose 0.9% to close at $8.99 on Thursday.
- Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on Abercrombie & Fitch, raising the price target to $62 from $56. The company’s stock has a 52-week high of $56.14.
- RSI Value: 71.45
- ANF Price Action: Shares of Abercrombie & Fitch gained 2.7% to close at $56.05 on Thursday.
- Stride reported better-than-expected fourth-quarter financial results. The company has a 52-week high of $47.35.
- RSI Value: 70.78
- LRN Price Action: Shares of Stride fell 0.1% to close at $45.39 on Thursday.
- SPI Energy disclosed the sale of 12 million shares of its subsidiary, Phoenix Motor Inc, at $1.02 per share, representing transaction value of $12.24 million. The company’s 52-week high is $2.48.
- RSI Value: 80.50
- PEV Price Action: Shares of Phoenix Motor jumped 34.3% to close at $0.9300 on Thursday.
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