Escorts Kubota, Apar Industries among 10 overbought stocks with RSI above 70
Relative Strength Index (RSI). This article aims to shed light on the significance of RSI and its role in assessing stock movements, with a special focus on stocks currently trading in the overbought zone.
The RSI is a technical indicator that evaluates the magnitude of recent price changes to determine whether a stock is overbought or oversold.
RSI values typically range from 0 to 100. Readings above 70 are often seen as a sign that a stock might be overbought and due for a potential price correction, while readings below 30 could suggest that a stock is oversold and could be poised for an upward reversal.
RSI plays a pivotal role in providing investors with insights into a stock's recent price performance.
By assessing whether a stock is potentially overvalued or undervalued, RSI helps investors make well-informed decisions. A high RSI reading could indicate that a stock's price has moved too far too fast and might be due for a pullback.
Conversely, a low RSI reading might suggest that a stock is trading at a discount and could be on the brink of an upward price movement.
On August 25, StockEdge, a leading stock market analytics platform, reported that more than 40 stocks were trading in the overbought zone. This revelation caught the attention of market analysts, including those at ETMarkets, who meticulously handpicked 10 stocks from this group for further evaluation.
