The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
In technical analysis, the relative strength index (RSI) helps to provide suggestions as to which stocks have seen extreme moves in the recent past. It is applicable in all timeframes, but it is usually found on the daily chart.
Readings above 70 warn of an overbought condition, suggesting a share may be poised to encounter a downward correction. In contrast, readings below 30 point to an oversold condition that may be poised to see rebound.
It is important to note that nothing is a certainty in financial markets, and an asset may remain overbought or oversold for an extended period without witnessing any ‘correcting’ move.
The stocks currently trading at overbought and oversold levels are shown below: