Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Jan. 2, 2024, three stocks in the consumer discretionary 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.
MEDIROM Healthcare Technologies Inc. (NASDAQ: MRM)
- The company’s stock jumped around 43% over the past five days and has a 52-week high of $7.40 .
- RSI Value: 73.29
- MRM Price Action: Shares of MEDIROM Healthcare Technologies gained 7.9% to close at $5.72 on Friday.
- On Oct. 12, Educational Development posted a profit for the second quarter. Per Mr. Craig White, President and CEO of Educational Development Corporation, "Our PaperPie division's second quarter net revenues decreased $6.6 million from the second quarter of last year, primarily due to the decrease in active Brand Partners, which is our key indicator of sales volumes for this division." The company’s stock gained around 30% over the past month and has a 52-week high of $4.00.
- RSI Value: 70.99
- EDUC Price Action: Shares of Educational Development gained 5.5% to close at $1.16 on Friday.
- On Dec. 6, Citi Trends adopted limited duration stockholder rights plan. The company’s stock jumped around 19% over the past month and has a 52-week high of $34.94.
- RSI Value: 70.58
- CTRN Price Action: Shares of Citi Trends gained 3% to close at $28.28 on Friday.
- On Dec. 11, Garrett Motion announced that Garrett performance launched an e-commerce platform, Garrett Marketplace. The company’s stock gained around 28% over the past month and has a 52-week high is $9.75.
- RSI Value: 82.84
- GTX Price Action: Shares of Garrett Motion gained 0.7% to close at $9.67 on Friday.
- On Dec. 14, Lennar reported better-than-expected results for its fourth quarter. Stuart Miller, executive chairman and co-CEO of Lennar, said, "We are pleased to report another strong quarter and year-end, against the backdrop of evolving, though constructive, market conditions. During our fourth quarter, the economic environment shifted as interest rates rose for most of the quarter, and then subsided. Higher interest rates tested homebuyer sentiment, although purchasers remained responsive to incentives that enabled affordability." The company’s stock jumped around 30% over the past five days and has a 52-week high of $156.01.
- RSI Value: 71.15
- LEN Price Action: Shares of Lennar fell 0.1% to close at $149.04 on Friday.
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