The stock market is a realm of constant fluctuations, driven by a multitude of factors. For investors, gaining insights into market momentum and identifying potential turning points is vital. Enter the Relative Strength Index
(RSI), a powerful technical indicator that aids in understanding whether a stock is overbought or oversold. On August 30th, StockEdge data revealed over 70 stocks residing in the overbought zone. ETMarkets brings to you a closer look at 10 of these stocks to illustrate how RSI can influence investment strategies.
The Relative Strength Index (RSI) is a momentum oscillator that quantifies the magnitude of recent price changes to assess overbought and oversold conditions. Ranging between 0 and 100, an RSI value above 70 typically indicates overbought territory, implying a potential reversal in price direction. Conversely, an RSI below 30 suggests oversold conditions, indicating a possible price rebound.
Here’s a snapshot of the 10 selected stocks currently residing in the overbought zone:
Stay tuned for an update on stocks in the overbought zone for August 31st, Thursday, as the data will be refreshed after the market closes.
(Disclaimer: This is an AI generated article. Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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