ZEEL, Tata Motors among 10 stocks with bearish RSI

economictimes.indiatimes.com:

Relative Strength Index (RSI) is one such powerful tool that helps gauge a stock's momentum and potential trend reversals. On August 1, StockEdge reported 25 stocks trading in the overbought zone but with declining RSI, indicating a bearish move. From this list, ETMarkets has handpicked 10 such stocks to explore further.

In this article, we will delve into the significance of RSI, analyze the selected overbought yet bearish stocks, and discuss why investors should consider RSI movement as an essential aspect of their decision-making process. The RSI is a popular technical indicator that oscillates between 0 and 100. It measures the magnitude of recent price changes in a stock, helping investors assess whether a stock is overbought or oversold.

RSI values above 70 suggest overbought conditions, which may lead to a potential price correction or pullback, while values below 30 indicate oversold conditions with the possibility of a price rebound. Assessing a stock's movement based on RSI is critical for investors as it provides valuable insights into a stock's current momentum and potential price direction. When a stock is overbought yet shows declining RSI, it signals that despite the stock being in high demand and reaching overextended levels, the buying momentum is waning.

This indicates a potential bearish move or a correction in stock price. Investors should exercise caution when considering such stocks for their portfolio and use RSI as a valuable tool to confirm their investment decisions.10 Stocks with Overbought Yet Bearish RSI 1) Polycab India Ltd. — RSI: 69.95, Prev.

RSI: 82.71 2) Tata Motors Ltd. — RSI: 69.8, Prev. RSI: 70.37 3) Motilal Oswal Financial Services Ltd.