Apar Industries, REC among 10 overbought stocks with RSI above 70
Relative Strength Index (RSI). This momentum oscillator has a profound impact on market analysis, aiding traders and investors in gauging the health of a stock's price movement.
Today, we delve into the concept of the overbought zone and explore how RSI can guide us through the complexities of the stock market.
RSI operates on a scale of 0 to 100, serving as a vital indicator of a stock's recent price performance. It assesses the magnitude of recent price changes to evaluate whether a stock is overbought or oversold.
An RSI value above 70 is generally considered to indicate that a stock is in an overbought zone, implying that the stock's price may have risen too far too fast and a price correction might be on the horizon.
On August 21, StockEdge reported that over 50 stocks had entered the overbought zone, prompting ETMarkets to meticulously choose 10 stocks for in-depth analysis. Let's examine some of these selected stocks:
(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)
