As of Jan. 15, 2025, two stocks in the consumer discretionary sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
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, according to Benzinga Pro.
Here’s the latest list of major overbought players in this sector.
RCI Hospitality Holdings Inc (NASDAQ:RICK)
- On Dec. 16, Rick Hospitality reported better-than-expected fourth-quarter financial results.. The company’s stock surged around 15% over the past six months and has a 52-week high of $63.76.
- RSI Value: 72.7
- RICK Price Action: Shares of RCI Hospitality gained 1% to close at $53.32 on Tuesday.
Sypris Solutions Inc (NASDAQ:SYPR)
- On Nov. 12, Sypris Solutions posted third-quarter earnings of 2 cents per share versus a year-ago loss of 3 cents per share. “We were pleased with the year-over-year revenue growth at Sypris Electronics,” commented Jeffrey T. Gill, President and Chief Executive Officer. “The backlog at Sypris Electronics exceeds $100 million and is expected to support growth through the remainder of 2024 and beyond. Customer funding has already been secured for a significant portion of these key programs, which enables us to procure inventory under multi-year purchase orders to mitigate future supply chain issues.” The company’s stock gained around 32% over the past month and has a 52-week high of $3.72.
- RSI Value: 86.9
- SYPR Price Action: Shares of Sypris Solutions gained 6.1% to close at $2.08 on Tuesday.
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