The most overbought stocks in the financial sector presents an opportunity to go short on these overvalued companies.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.
Here’s the latest list of major overbought players in this sector.
Jiayin Group Inc JFIN
- Jiayin Group, during November, posted upbeat quarterly results. The company’s stock has a 52-week high of $3.60 .
- RSI Value: 84.52
- JFIN Price Action: Shares of Jiayin Group rose 16.5% to settle at $3.60 on Tuesday and lost 3.1% in today’s pre-market trading.
Trean Insurance Group, Inc. TIG
- Trean Insurance Group announced a definitive agreement to be acquired by Altaris Capital Partners for $6.15 per share in cash. The company’s stock has a 52-week high of $8.34.
- RSI Value: 84.07
- TIG Price Action: Shares of Trean Insurance Group gained 0.3% to close at $6.02 on Tuesday.
HSBC Holdings plc HSBC
- HSBC announced it will sell its banking business in Canada to RBC for cash consideration of $10.1 billion. The company has a 52-week high of $38.61.
- RSI Value: 82.97
- HSBC Price Action: Shares of HSBC Holdings gained 0.7% to close at $34.39 on Tuesday and added 0.4% in today’s pre-market trading.
Grupo Financiero Galicia S.A. GGAL
- The company’s stock dropped 24% over the past six months. The company’s 52-week high is $11.60.
- RSI Value: 81.31
- GGAL Price Action: Shares of Grupo Financiero Galicia gained 1.6% to close at $11.58 on Tuesday and gained 0.3% in after-hours trading.
Territorial Bancorp Inc. TBNK
- Territorial Bancorp, last month, adopted a repurchase program. The company has a 52-week high of $25.98.
- RSI Value: 80.98
- TBNK Price Action: Shares of Territorial Bancorp rose 0.1% to settle at $25.13 on Tuesday.
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