Investors have been accumulating shares of several big-name companies — from GE Vernova to United Airlines — during the market's recent dip. But those and other overbought stocks could be due for a pullback, according to one popular yardstick. November is off to a strong start after the major U.S. stock indexes ended October in the red. The S & P 500 fell 1% in the previous month, snapping a five-month advance, while the 30-stock Dow shed 1.3% and the Nasdaq edged down 0.5%.
Pro screened for stocks that are considered technically overbought on the basis of their 14-day relative strength index . Companies with a 14-day RSI above 70 are often regarded as overbought, signaling a pullback may be ahead, while a 14-day RSI below 30 often suggests a stock is oversold and could see future upside. GE Vernova shares have jumped 19% over the past month, and now have a 14-day RSI of 76.9. Shares briefly rose as much as 3.3% on Friday, reaching a fresh all-time high.
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Source: CNBC - 🏆 12. / 72 Read more »