Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Feb. 29, 2024, three 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.
Avidity Biosciences, Inc. (NASDAQ: RNA)
- On Feb. 28, Avidity Biosciences posted a wider-than-expected quarterly loss. "With proven delivery of RNA to muscle and robust efficacy and long-term safety data from our ongoing clinical development programs, we are revolutionizing the delivery of RNA with our AOC technology," said Sarah Boyce, president and chief executive officer at Avidity. "2024 is poised to be a transformative year for Avidity as we plan to initiate the global Phase 3 HARBOR™ trial for people living with DM1 and report data from all three of our clinical development programs to treat rare muscle diseases – DM1, FSHD and DMD44." The company’s stock gained around 25% over the past month and has a 52-week high of $24.84 .
- RSI Value: 80.36
- RNA Price Action: Shares of Avidity Biosciences fell 0.3% to close at $15.26 on Wednesday.
- On Feb. 28, Catalyst Pharmaceuticals posted better-than-expected quarterly results. "In 2023, Catalyst delivered exceptional financial performance demonstrated by robust revenue growth, exceeding our full-year guidance. Our confidence for continued growth is strengthened by the outstanding execution of our strategic initiatives, expansion of our product portfolio, and a growing commercial presence in the U.S. neuroscience market," stated Richard J. Daly, CEO of Catalyst. The company’s stock gained around 6% over the past five days and has a 52-week high of $18.22.
- RSI Value: 75.19
- CPRX Price Action: Shares of Catalyst Pharmaceuticals gained 1.5% to close at $14.56 on Wednesday.
- On Feb. 28, Silk Road Medical posted a narrower-than-expected fourth-quarter loss. “With the right team in place, broad reimbursement, and extensive evidence in support of TCAR, we are laser focused on deepening adoption in physicians who perform TCAR,” said Chas McKhann, CEO of Silk Road Medical. The company’s stock gained around 17% over the past month has a 52-week high of $48.44.
- RSI Value: 77.31
- SILK Price Action: Shares of Silk Road Medical gained 1.1% to close at $17.69 on Wednesday.
Read More: Shoals Technologies Posts Weak Q4 Results, Joins Butterfly Network, Schrödinger And Other Big Stocks Moving Lower In Thursday's Pre-Market Session
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.