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.
E-Home Household Service Holdings Limited (NASDAQ: EJH)
- The company’s shares jumped 80% over the past month. The company’s stock has a 52-week high of $150.00. .
- RSI Value: 80.28
- EJH Price Action: Shares of E-Home Household Service fell 0.5% to close at $1.98 on Monday.
- Chico’s FAS announced a definitive agreement to be acquired by private equity firm Sycamore Partners for $1 billion. The company’s stock has a 52-week high of $7.53.
- RSI Value: 78.91
- CHS Price Action: Shares of Chico's FAS fell 0.1% to close at $7.48 on Monday.
- Stride reported a year-over-year increase in first-quarter EPS results and better-than-expected sales results. The company also issued FY24 revenue guidance above estimates. The company has a 52-week high of $55.74.
- RSI Value: 77.76
- LRN Price Action: Shares of Stride gained 1.5% to close at $55.24 on Monday.
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