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.
There has been little change on the overbought and oversold lists, as the relatively tight trading range for the FTSE 100 precludes any significant moves into or out of extreme RSI ranges. It is important to remember that shares can remain overbought or oversold for an extended period, and a simple RSI signal is not, by itself, a signal to open a trade.
For Provident Financial, it is worth nothing that we have been sharply overbought twice before this year, and each time we had a brief decline before the rally resumed. The same thing may occur this time round, and the share price certainly looks overextended at the present moment, being 8.7% above the 50-day moving average.