Overbought conditions can be a signal for investors, and the Relative Strength Index (RSI) is a crucial tool to gauge them. On November 6, Tuesday, StockEdge flagged 12 stocks in overbought zones, and ETMarkets investigates 5 of them to understand RSI s significance in assessing stock movements.
"We have been learning throughout the last three decades that getting a stock at 100 times PE multiple or five or six times of sales is definitely not a good idea unless you are so confident that it will become 10 times of sales over the next two years or so and that can happen only if that is the only company in that sector existing on earth which is not the case."
Stocks in the overbought zone can be both intriguing and challenging. On November 3, Friday, data from StockEdge identified 14 such stocks. We ve carefully selected 5 of them for a closer look in this article. Dive into the significance of Relative Strength Index (RSI) and how it helps assess stock movement while exploring these overbought gems.
In a display of strength and resilience, several major stocks surged past their 200-day Simple Moving Average (SMA) on November 3. This accomplishment signifies their robust performance and potential for further growth.