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.

• Kineta announced a new research agreement with Fred Hutchinson Cancer Center to evaluate VISTA biomarker expression. "We are excited to work with the Fred Hutchinson Cancer Center and tap into their cancer pathology expertise as we advance the clinical development of KVA12123," said Thierry Guillaudeux, Ph.D., Chief Scientific Officer of Kineta. "VISTA expression has the potential to be a clinically relevant biomarker that we can use to inform our Phase 2 clinical study design with KVA12123 and ultimately predict positive anti-tumor responses to treatment." The company’s stock has a 52-week high of $15.54.
• RSI Value: 76.52
• KA Price Action: Shares of Kineta fell 12% to close at $3.95 on Tuesday.

• LifeMD reported better-than-expected second-quarter financial results. “The second quarter of 2023 was a breakout quarter for LifeMD. Record quarterly revenue was driven by increasing demand for our telehealth offering and we achieved positive free cash flow for the first time in our company’s history and ahead of guidance,” said Justin Schreiber, Chairman and Chief Executive Officer of LifeMD. The company has a 52-week high of $6.86.
• RSI Value: 71.68
• LFMD Price Action: Shares of LifeMD fell 4.8% to close at $5.96 on Tuesday.