ICICI Bank, Keystone Realtors among 10 overbought stocks with bearish RSI
Relative Strength Index (RSI) provides essential insights into a stock's momentum, overbought or oversold conditions, and potential price movements. On Wednesday, July 19, StockEdge reported over a dozen stocks trading in the overbought zone with a bearish or declining RSI trend. These stocks witnessed a decline in RSI below the critical 70 mark.
From this list, ETMarkets has picked 10 stocks for a closer analysis to empower potential investors with crucial information for their decision-making process. In this article, we will explore the concept of RSI, understand its importance in assessing stock movement, and analyze the 10 stocks exhibiting an intriguing combination of an overbought zone and bearish RSI trends. The RSI is a popular technical indicator that oscillates between 0 and 100.
RSI measures the speed and magnitude of a stock's recent price movements, providing insights into its overbought or oversold conditions. RSI values above 70 indicate that a stock is in the overbought zone, suggesting a potential price correction. Conversely, RSI values below 30 suggest that a stock is in the oversold zone and may witness an upward trend.
Traders often use RSI to identify potential entry and exit points, understand the stock's momentum, and assess potential trend reversals.10 Stocks with Overbought Zone and Bearish RSI Trends on July 19: 1) ZF Commercial Vehicle Control Systems India Ltd. (RSI: 69.97, Prev. RSI: 71.04): A technology-driven supplier of commercial vehicle systems and components.
2) Alkem Laboratories Ltd. (RSI: 69.85, Prev. RSI: 74.98): A leading pharmaceutical company engaged in the research, development, and manufacturing of various drugs.
3) Raymond Ltd. (RSI: 69.84, Prev. RSI: 70.43): A diversified
. Read more on economictimes.indiatimes.com
