The most overbought stocks in the consumer discretionary 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.

First Watch Restaurant Group, Inc. (NASDAQ:FWRG)

McDonald's Corporation (NYSE:MCD)

• McDonald's posted better-than-expected quarterly results. The company’s stock has a 52-week high of $298.80.
• RSI Value: 72.17
• MCD Price Action: Shares of McDonald's fell 1% to close at $295.22 on Wednesday.

O'Reilly Automotive, Inc. (NASDAQ:ORLY)

• O'Reilly Automotive posted better-than-expected quarterly results. The company has a 52-week high of $941.87.
• RSI Value: 72.81
• ORLY Price Action: Shares of O'Reilly Automotive fell 0.5% to close at $931.67 on Wednesday.

Churchill Downs Incorporated (NASDAQ:CHDN)

• Churchill Downs recently posted results for the first quarter. The company’s 52-week high is $300.90.
• RSI Value: 79.58
• CHDN Price Action: Shares of Churchill Downs fell 0.5% to close at $296.29 on Wednesday.

Skechers U.S.A., Inc. (NYSE:SKX)

• Skechers reported sponsorship of the Pickleball Canada National Championship. The company has a 52-week high of $54.36.
• RSI Value: 70.88
• SKX Price Action: Shares of Skechers rose 1% to settle at $53.53 on Wednesday.

Read More: Roblox And 3 Other Stocks Insiders Are Selling