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Impending Recession in the Health Care Sector?

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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