As of Feb. 2, 2024, investors who prioritize momentum in their trading decisions may need to heed a real warning in the health care sector, as four stocks could be signaling a potential crash.
The RSI, a momentum indicator, compares a stock’s strength on days when prices rise and fall. It offers traders insight into a stock’s short-term performance. An asset is considered overbought when the RSI exceeds 70.
Here’s a roundup of the leading overbought stocks in this sector.
PepGen Inc. PEPG
- On Jan. 8, PepGen’s stock soared roughly 79% over five days after dosing the first patient in a clinical trial for a muscular dystrophy treatment.
- RSI Value: 84.56
- PEPG Price Action: Shares closed at $12.39 on Thursday, marking a 23.5% gain.
CalciMedica, Inc. CALC
- On Jan. 22, CalciMedica secured a private placement of up to approximately $55 million, triggering a 55% stock surge in the past month.
- RSI Value: 70.24
- CALC Price Action: Shares dipped 16.7% to close at $6.20 on Thursday.
Oramed Pharmaceuticals Inc. ORMP
- Oramed Pharmaceuticals’ stock rose approximately 24% after entering into a joint venture agreement on Jan. 22.
- RSI Value: 70.03
- ORMP Price Action: Shares fell 5.5% to close at $2.83 on Thursday.
FibroGen, Inc. FGEN
- On Jan. 25, FibroGen’s stock skyrocketed around 104% post-announcement of the completion of an experimental arm in a pancreatic cancer trial.
- RSI Value: 86.52
- FGEN Price Action: Shares surged 23.4% to close at $2.37 on Thursday.
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