The Relative Strength Index (RSI) is a tool that compares recent transactions of a stock to gauge the stock price’s strength. It tells investors whether a stock has been oversold, making it likely that it is undervalued, or overbought, meaning that it could be trading at a premium on momentum. Oversold stocks have RSI’s under 40 – the lower the RSI, the more oversold the stock – whereas overbought stocks have higher RSI’s (over 60) and the higher the RSI, the more overbought the stock. Investors can maximize the timing of a stock transaction using this tool.
The companies on this list are priced have high RSIs (over 70) and high P/E ratios, indicating that they are overbought and priced to sell: For more info about RSI, please go to the website of Insider Monkey.
