Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Jan. 5, 2024, four stocks in the financial 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.
X Financial (NYSE: XYF)
- On Nov. 22, X Financial reported third-quarter adjusted earnings per ADS of $1.04 and sales of $191.50 million. Mr. Justin Tang, the Founder, Chief Executive Officer and Chairman of the Company, commented, "We are pleased to see that our established strategy continued to deliver strong results in the third quarter. Our loan facilitation and origination amount reached the high end of our previous guidance, and both our top line and bottom line showed substantial year-over-year improvement." The company’s stock jumped around 16% over the past five days and has a 52-week high of $5.00 .
- RSI Value: 71.36
- XYF Price Action: Shares of X Financial gained 8.4% to close at $4.27 on Thursday.
- On Jan. 4, Tradeweb Markets reported December trading volume data. Average daily volume grew 43.3% year-over-year. Billy Hult, Tradeweb CEO, said "Historic interest rate moves, geopolitical uncertainty and ongoing market volatility helped drive a 2023 resurgence in fixed income. Despite a challenging start to the year, we reported a 27.6% YoY increase in average daily volume for the full year and broke numerous volume records across rates, credit, equities and money markets." The company’s stock gained around 5% over the past five days and has a 52-week high of $97.18.
- RSI Value: 71.68
- TW Price Action: Shares of Tradeweb Markets rose 6.9% to close at $95.10 on Thursday.
- On Nov. 7, MoneyLion posted downbeat quarterly sales. "MoneyLion had another record quarter in Q3 2023, demonstrating the strength and resilience of our business model," said Dee Choubey, MoneyLion’s co-founder and Chief Executive Officer. "We continue to leverage our compounding proprietary data sets through various customer insights, and we continue to innovate our technology by developing and releasing new product features that exist within our consumer-facing Personal Financial Management product set and are also available to our 1,100+ Enterprise Partners." The company’s stock jumped around 48% over the past month and has a 52-week high of $66.47.
- RSI Value: 75.87
- ML Price Action: Shares of MoneyLion gained 3.4% to close at $63.40 on Wednesday.
- On Nov. 14, FSK priced public offering of $400 million 7.875% Unsecured Notes due 2029. The company’s stock gained around 4% over the past five days and has a 52-week high is $20.99.
- RSI Value: 77.62
- FSK Price Action: Shares of FS KKR Capital gained 3.1% to close at $20.89 on Thursday.
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