Top 5 Health Care Stocks That May Crash In March


The most overbought stocks in the health care 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.

Jounce Therapeutics, Inc. JNCE

  • Jounce Therapeutics confirmed receipt of an unsolicited proposal from Concentra Biosciences to acquire 100% of the company. The company’s stock has a 52-week high of $7.94 .
  • RSI Value: 71.51
  • JNCE Price Action: Shares of Jounce Therapeutics dropped 4.8% to close at $1.59 on Tuesday.

Bellerophon Therapeutics, Inc. BLPH

  • Bellerophon Therapeutics announced a $5 million registered direct offering with an institutional investor. The company’s stock has a 52-week high of $8.44.
  • RSI Value: 78.94
  • BLPH Price Action: Shares of Bellerophon Therapeutics fell 2.4% to close at $7.19 on Tuesday.

Corbus Pharmaceuticals Holdings, Inc. CRBP

  • Corbus Pharmaceuticals posted a wider-than-expected quarterly loss. "The fourth quarter and recent weeks have been a productive period for Corbus as we continue to evolve into a precision oncology company," said Yuval Cohen, Ph.D., Chief Executive Officer of Corbus. The company has a 52-week high of $18.72.
  • RSI Value: 72.69
  • CRBP Price Action: Shares of Corbus Pharmaceuticals fell 7.5% to close at $6.39 on Tuesday.

Provention Bio, Inc. PRVB

  • Sanofi agreed to acquire Provention Bio for $25.00 per share in cash, representing an equity value of approximately $2.9 billion. The company’s 52-week high is $24.23.
  • RSI Value: 86.27
  • PRVB Price Action: Shares of Provention Bio fell 0.3% to close at $23.93 on Tuesday.

Reneo Pharmaceuticals, Inc. RPHM

  • Reneo Pharmaceuticals achieved target enrollment in pivotal STRIDE study of Mavodelpar (REN001) in primary mitochondrial myopathies. The company has a 52-week high of $6.27.
  • RSI Value: 71.70
  • RPHM Price Action: Shares of Reneo Pharmaceuticals rose 5.5% to settle at $6.18 on Tuesday.

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