Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Dec. 14, 2023, four 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.
Gaotu Techedu Inc. (NYSE: GOTU)
- On Nov. 22, Gaotu Techedu posted an increase in third-quarter sales. The company’s stock jumped around 45% over the past month and has a 52-week high of $5.49 .
- RSI Value: 78.88
- GOTU Price Action: Shares of Gaotu Techedu gained 7.3% to close at $3.69 on Wednesday.
- On Nov. 9, Carrols Restaurant reported better-than-expected third-quarter financial results. The company’s stock gained around 11% over the past five days and has a 52-week high of $8.28.
- RSI Value: 74.24
- TAST Price Action: Shares of Carrols Restaurant gained 3.1% to close at $8.26 on Wednesday.
- On Nov. 28, American Public Education authorized a new program to repurchase up to $10 million of shares of the company's common stock. The company’s stock jumped around 63% over the past month and has a 52-week high of $13.74.
- RSI Value: 74.93
- APEI Price Action: Shares of American Public Education gained 3.7% to close at $9.70 on Wednesday.
- On Nov. 16, Sonos reported better-than-expected financial results and announced a buyback. The company’s stock gained around 51% over the past month and has a 52-week high is $21.98.
- RSI Value: 84.63
- SONO Price Action: Shares of Sonos gained 2.5% to close at $17.01 on Wednesday.
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