ETMarkets delves into the Relative Strength Index (RSI) to uncover 5 stocks that appear overbought but have bearish RSI trends, shedding light on the importance of RSI in stock analysis.
The Relative Strength Index (RSI) is a versatile momentum indicator that quantifies the speed and change of price movements. It offers a scale ranging from 0 to 100, where levels above 70 are considered overbought, and below 30 are seen as oversold. So why is RSI so important for investors?
October 13, 2023, stands as a remarkable day when midcap and smallcap stocks demonstrated their strength and potential, reaffirming their role as valuable contributors to the dynamic landscape of the stock market.
On the daily chart, DLF has successfully broken out above a 'consolidation zone' ranging from Rs 543- 514. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.