Shyam Metalics, Alkem Laboratories among 10 overbought stocks with RSI above 70
Relative Strength Index (RSI) is one such indicator that plays a pivotal role in assessing the momentum of stocks. In this article, we will explore the concept of overbought stocks, analyze the data from StockEdge on overbought stocks, and discuss how RSI can empower investors to make calculated choices in the stock market. Overbought stocks are those that have experienced significant price increases and are potentially due for a price correction.
The RSI is a key technical indicator used to measure the magnitude of recent price changes, indicating whether a stock is overbought or oversold. RSI values above 70 typically suggest that a stock might be overbought, indicating a possible reversal or pullback in price. RSI is a powerful tool for assessing the current state of a stock's price movement.
By comparing the magnitude of recent gains to recent losses, RSI provides insights into whether a stock is potentially overvalued or undervalued. This information is invaluable for investors, as it helps them navigate the complexities of the market and make informed choices. On August 9, StockEdge reported that over 80 stocks were trading in an overbought zone, based on their RSI values.
From this list, ETMarkets selected 10 stocks that exhibit notable overbought characteristics: 1) Lupin Ltd. 2) Gland Pharma Ltd. 3) Cipla Ltd.
4) BSE Ltd. 5) Shyam Metalics And Energy Ltd. 6) Alkem Laboratories Ltd.
7) Dr. Reddy's Laboratories Ltd. 8) Indian Railway Finance Corporation Ltd.
9) REC Ltd. 10) Natco Pharma Ltd. The data pertaining to stocks whose RSI in the overbought zone on August 10, Thursday will be updated later today.
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