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.

Outlook Therapeutics, Inc. (NASDAQ:OTLK)

MorphoSys AG (NASDAQ:MOR)

Krystal Biotech, Inc. (NASDAQ:KRYS)

IDEAYA Biosciences, Inc. (NASDAQ:IDYA)

• IDEAYA received IND clearance enabling Phase 1/2 clinical trial for combination of IDE397 and AMG 193 in MTAP-deletion solid tumors. The company’s 52-week high is $24.96.
• RSI Value: 70.85
• IDYA Price Action: Shares of IDEAYA Biosciences fell 1.9% to close at $24.39 on Monday.

Biohaven Ltd. (NYSE:BHVN)

• Biohaven recently issued overview of clinical progress, regulatory updates, and pipeline developments at R&D Day. The company has a 52-week high of $22.05.
• RSI Value: 78.88
• BHVN Price Action: Shares of Biohaven fell 0.3% to settle at $21.65 on Monday.

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