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.

Orchestra BioMed Holdings, Inc. (NASDAQ:OBIO)

• Orchestra BioMed was granted FDA approval of an investigational device exemption to initiate its global BACKBEAT study evaluating BackBeat CNT for hypertension in pacemaker patients. The company’s stock has a 52-week high of $23.39. .
• RSI Value: 70.12
• OBIO Price Action: Shares of Orchestra BioMed fell 10.2% to close at $9.67 on Wednesday.

Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX)

• Crinetics Pharmaceuticals priced its upsized $350 million public offering of 11,441,648 common shares at $30.59 per share. The company’s stock has a 52-week high of $31.00.
• RSI Value: 72.20
• CRNX Price Action: Shares of Crinetics Pharmaceuticals fell 2.6% to close at $28.62 on Wednesday.

Takeda Pharmaceutical Company Limited (NYSE:TAK)

• The FDA has accepted for review Takeda's new drug application resubmission for TAK-721 (budesonide oral suspension) for the short-term treatment of eosinophilic esophagitis. The company has a 52-week high of $17.15.
• RSI Value: 73.80
• TAK Price Action: Shares of Takeda Pharmaceutical fell 0.1% to close at $16.29 on Wednesday.

NextGen Healthcare, Inc. (NASDAQ:NXGN)

• NextGen Healthcare agreed to be acquired by Thoma Bravo for $23.95 per share in cash. The company’s 52-week high is $23.73.
• RSI Value: 87.30
• NXGN Price Action: Shares of NextGen Healthcare rose 0.1% to close at $23.67 on Wednesday.

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