This article sheds light on stocks currently residing in the overbought zone but exhibiting bearish RSI trends. With StockEdge s recent data as the backdrop and ETMarkets selected stocks, uncover the importance of RSI in guiding informed investment decisions.
This article delves into the intriguing realm of stock analysis, uncovering a fascinating phenomenon where stocks are in the overbought zone but exhibit bearish Relative Strength Index (RSI) trends. By highlighting data from a recent screener, we explore 9 such stocks and shed light on the importance of assessing RSI trends in stock movement analysis.
Technically speaking, there is clearly a very intense tussle going on between the bull and the bear camp, as evident on the charts. At the same time, there are some bearish patterns on weekly charts, both on Nifty & Bank Nifty, indicating that for now, the bulls will have to be content with the recent tops not being breached easily. However, the saving grace is that the downside also appears to be strongly supported around last weeks low.
On August 3, Thursday, StockEdge data revealed that over 50 stocks were trading in an overbought zone. ETMarkets has handpicked 10 such stocks from the pack, providing an interactive and informative analysis in this article.