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.

Capricor Therapeutics, Inc. (NASDAQ:CAPR)

• The company posted better-than-expected quarterly results. “In the second quarter of 2023 we presented positive two-year data from our ongoing HOPE-2 open label extension (OLE) study, which we believe further supports our rapidly advancing late-stage clinical development program for CAP-1002 in patients with Duchenne Muscular Dystrophy (DMD),” said Linda Marbán, Ph.D., Capricor’s chief executive officer. The company’s stock has a 52-week high of $8.11. .
• RSI Value: 71.52
• CAPR Price Action: Shares of Capricor Therapeutics fell 4.9% to close at $7.34 on Monday.

Praxis Precision Medicines, Inc. (NASDAQ:PRAX)

• Praxis Precision Medicine posted a narrower second-quarter loss. “Our four clinical-stage programs continue to make great progress, and we are excited to be advancing ulixacaltamide into Phase 3,” said Marcio Souza, president and chief executive officer of Praxis. The company’s stock has a 52-week high of $5.25.
• RSI Value: 71.29
• PRAX Price Action: Shares of Praxis Precision Medicines fell 3.5% to close at $1.40 on Tuesday.

National HealthCare Corporation (NYSE:NHC)

• For the quarter ended June 30, 2023, the reported GAAP net income attributable to NHC was $16,281,000, up from $3,203,000 for the year-ago period. The company has a 52-week high of $70.78.
• RSI Value: 74.30
• NHC Price Action: Shares of National HealthCare fell 0.7% to close at $68.56 on Tuesday.

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Dr. Reddy's Laboratories Limited (NYSE:RDY)

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