The overbought stocks in the consumer discretionary sector present an opportunity to short on these overvalued companies.
The RSI is a momentum indicator that 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 provide traders with a more accurate picture of a stock's performance in the short term. An asset should be overbought if the RSI is above 70.
What are the top overbought players in this market?
ANF price action: Shares of Abercrombie & Fitch rose 2.7% to close at $56.05 on Thursday.
Shares of Phoenix Motors rose 34.3% on Thursday to close at $0.9300.
Wall Street's Most Accurate Analysts Say These 3 Industrial Stocks Stocks Are Delivering High-Dividend Yields.