Benzinga - by Lisa Levin, Benzinga Editor.
The most overbought stocks in the financial 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.
CME Group Inc. (NASDAQ: CME)
- CME Group reported better-than-expected second-quarter results. "Given ongoing uncertainty in both macroeconomic and geopolitical environments, market participants continued turning to CME Group risk management products and services in Q2, with particularly noteworthy volume increases across our interest rate, commodity and options contracts," said CME Group Chairman and Chief Executive Officer Terry Duffy. The company’s stock has a 52-week high of $221.13. .
- RSI Value: 70.76
- CME Price Action: Shares of CME Group gained 1.4% to close at $220.06 on Thursday.
- Western New England posted weaker-than-expected second-quarter earnings. James C. Hagan, President and Chief Executive Officer, commented, “While the recent national market events and current interest rate cycle have made it very challenging for all banks, we believe our Company continues to be well positioned with strong capital and access to liquidity to sustain us through this interest rate cycle.” The company’s stock has a 52-week high of $10.25.
- RSI Value: 77.46
- WNEB Price Action: Shares of Western New England Bancorp fell 0.3% to close at $7.13 on Thursday.
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