Benzinga - by Lisa Levin, Benzinga Editor.
As of Dec. 5, 2023, five stocks in the health care 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.
EyePoint Pharmaceuticals, Inc. (NASDAQ: EYPT)
- On Dec. 4, EyePoint Pharmaceuticals announced topline results of its Phase 2 DAVIO 2 trial of EYP-1901, an investigational sustained delivery maintenance treatment for wet age-related macular degeneration (wet AMD) combining vorolanib, a selective tyrosine kinase inhibitor with bioerodible Durasert E. The company’s stock jumped around 198% over the past five days and has a 52-week high of $22.44 .
- RSI Value: 93.44
- EYPT Price Action: Shares of EyePoint Pharmaceuticals jumped 177.5% to close at $18.34 on Monday.
- On Nov. 30, Altimmune announced topline results from its 48-week MOMENTUM Phase 2 obesity trial of pemvidutide with 391 subjects. The company’s stock gained around 73% over the past month and has a 52-week high of $17.17.
- RSI Value: 91.16
- ALT Price Action: Shares of Altimmune gained 29.7% to close at $4.63 on Monday.
- On Nov. 9, Omeros posted a wider loss for the third quarter. "Having discontinued our Phase 3 ARTEMIS-IGAN trial, we are closely examining the data to learn what happened and why so that we can apply the findings to the design and conduct of future renal clinical studies across our complement franchise," said Gregory A. Demopulos, M.D., Omeros’ chairman and chief executive officer. The company’s stock jumped around 87% over the past month and has a 52-week high of $7.80.
- RSI Value: 83.06
- OMER Price Action: Shares of Omeros gained 13.9% to close at $2.54 on Monday.
- On Nov. 14, Terns Pharma posted a narrower quarterly loss. “Throughout the third quarter and in recent weeks, we made meaningful progress across all three of our clinical development programs, opening U.S. Investigational New Drug (IND) applications, both for our allosteric BCR-ABL inhibitor TERN-701 for chronic myeloid leukemia (CML) and our lead small molecule oral GLP-1 agonist TERN-601 for obesity, and releasing Phase 2 data for our thyroid hormone receptor β agonist TERN-501 from the DUET study in NASH patients,” stated Erin Quirk, MD, president and head of research and development at Terns. The company’s stock gained more than 56% over the past five days and has a 52-week high is $14.04.
- RSI Value: 79.12
- TERN Price Action: Shares of Terns Pharmaceuticals rose 16.3% to close at $6.07 on Monday.
- On Nov. 7, Ocular Therapeutix posted a narrower-than-expected quarterly loss. “We made significant progress at Ocular Therapeutix in the third quarter,” said Antony Mattessich, President and CEO. The company’s stock jumped 51% over the past five days and has a 52-week high of $7.96.
- RSI Value: 77.61
- OCUL Price Action: Shares of Ocular Therapeutix gained 25.4% to close at $3.36 on Monday.
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