As of April 25, 2024, three stocks in the financial 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. Â
Here’s the latest list of major overbought players in this sector.
Barclays PLC (NYSE:BCS)
- On April 25, Barclays posted a first-quarter GAAP EPS of 52 cents. The company’s stock gained around 4% over the past month and has a 52-week high of $9.98.
- RSI Value: 70.48
- BCS Price Action: Shares of Barclays fell 1% to close at $9.60 on Wednesday.
SLM Corporation (NASDAQ:SLM)
- On April 24, SLM posted better-than-expected quarterly earnings. The company’s stock gained around 6% over the past five days and has a 52-week high of $22.21.
- RSI Value: 71.88
- SLM Price Action: Shares of SLM gained 0.8% to close at $22.10 on Wednesday.
American Express Company (NYSE:AXP)
- On April 19, American Express said first-quarter revenue (net of interest expense) grew 11% year-on-year to $15.80 billion, marginally beating the consensus of $15.79 billion. Chair and CEO Stephen J. Squeri said, “Our fee-based products accounted for around 70 percent of the new account acquisitions we saw in the quarter, and we continue to see strong demand from Millennial and Gen Z consumers, who accounted for over 60 percent of new consumer account acquisitions globally. Our credit metrics remain best in class.” The company’s stock gained around 10% over the past five days and has a 52-week high of $240.55.
- RSI Value: 73.04
- AXP Price Action: Shares of American Express gained 0.1% to close at $239.12 on Wednesday.
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