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.

Werewolf Therapeutics, Inc. (NASDAQ:HOWL)

• Werewolf Therapeutics released preliminary results from initial monotherapy dose-escalation cohorts of an ongoing Phase 1/1b trial of WTX-124 in patients with advanced or metastatic solid tumors. The company’s stock has a 52-week high of $4.5690. .
• RSI Value: 77.40
• HOWL Price Action: Shares of Werewolf Therapeutics jumped 47.4% to close at $3.17 on Friday.

Dermata Therapeutics, Inc. (NASDAQ:DRMA)

• Dermata Therapeutics said it has completed start-up activities necessary to support its DMT310 Phase 3 STAR-1 trial in acne. The company’s stock has a 52-week high of $12.16.
• RSI Value: 71.80
• DRMA Price Action: Shares of Dermata Therapeutics jumped 36% to close at $0.8198 on Friday.

CVRx, Inc. (NASDAQ:CVRX)

• CVRx announced that the Centers for Medicare and Medicaid Services (CMS) has reassigned the Barostim implant procedure for procedures performed in the outpatient setting as part of the 2024 Medicare Hospital Outpatient Prospective Payment System (OPPS) final rule. "We sincerely appreciate the consideration taken by CMS of the resource requirements associated with the Barostim implant procedure. We believe that reassignment to APC 1580 will facilitate increased access to the therapy for Medicare patients with heart failure by offering facilities sufficient reimbursement for the procedure," said Nadim Yared, President and CEO of CVRx. The company has a 52-week high of $19.94.
• RSI Value: 81.68
• CVRX Price Action: Shares of CVRx jumped 29.3% to close at $17.61 on Friday.

Owens & Minor, Inc. (NYSE:OMI)

Aura Biosciences, Inc. (NASDAQ:AURA)

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