Blue Star, Vodafone Idea among 10 stocks with RSI trending bearish
Relative Strength Index (RSI). On September 27, Wednesday, StockEdge revealed that 25 stocks were trading in the overbought zone but were accompanied by declining RSI trends. In this article, we explore the importance of RSI and highlight 10 stocks that may need a closer look from investors.
The Relative Strength Index (RSI) is a widely used momentum oscillator that helps investors gauge the strength and direction of a stock's price movements.
It oscillates between 0 and 100 and is a valuable tool for identifying overbought and oversold conditions in the market.
Overbought and Oversold Signals: RSI values above 70 typically indicate that a stock is overbought and may be due for a price correction. Conversely, RSI values below 30 suggest that a stock is oversold and may be ripe for a potential rebound.
Bearish and Bullish Divergences: RSI can also provide insights into potential trend reversals. Bearish divergences occur when RSI is making lower highs while the stock's price is making higher highs, indicating potential weakness.
Bullish divergences are the opposite, signaling potential strength.
Now, let's take a closer look at 10 stocks that are in the overbought zone but exhibit a bearish or declining RSI trend:
1) TVS Motor Company Ltd.
RSI: 69.32
Prev. RSI: 70.34
2) Vodafone Idea Ltd.
RSI: 69.13
Prev. RSI: 70.65
3) Blue Star Ltd.
RSI: 68.49
Prev.
RSI: 71.14
4) KIOCL Ltd.
RSI: 66.81
Prev. RSI: 71.85
5) Maharashtra Scooters Ltd.
RSI: 66.42
Prev. RSI: 75.77
6) Trent Ltd.
RSI: 63.55
Prev.
