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Shares RSIs, highs and lows

A look at shares trading at significant levels today.

Pfizer pills
Source: Bloomberg

There is little change to the overbought and oversold lists, but Associated British Foods and Amlin are both moving higher again, moving closer to 52-week highs. Also doing well is Shire, as investors continue to buy into the company in the wake of the AstraZeneca/Pfizer takeover last month.

Relative Strength Index (RSI)*

Company

Share Price

Oversold

Company

Share Price

Overbought

Kenmare Resources 9.26 27.05 Meggitt 528.5

81.51

AZ Electronic Materials SA 388.75 27.74 United Utilities Group 892 79.25
Debenhams 72.9 29.32 Synergy Health 1391 77.65
Fenner 339.4 30.03 Smith & Nephew

1093

76.14
Punch Taverns 9.25 30.82 Severn Trent 2003 74.90
Carpetright

518.5

31.25 Heritage Oil 318.2 73.46
Petropavlovsk 59.25 33.74 Ultra Electronics Holdings 1868 72.70

 

Highs/Lows**

Company

Share Price

% off 52-week high

Company

Share Price

% off 52-week low

Reckitt Benckiser Group 5145 -0.29% Punch Taverns 9.25

0.00%

Severn Trent 2003 -0.40% Debenhams 72.9 2.89%
Amlin 484.4 -0.82% Lonmin 241.5

3.34%

Associated British Foods 3061 -0.97% Kenmare Resources

9.26

3.81%
BP 506.1 -0.98% Experian 1057 3.83%
Shire

3577

-1.05% Intertek Group 2900 4.02%
United Utilities Group 892 -1.16% Carpetright 518.5 5.17%
Reed Elsevier 947 -1.30% GlaxoSmithKline 1612.5 5.53%
Pennon Group 778.5 -1.46% Antofagasta 774.5 5.66%
Provident Financial 2155 -1.46% Dunelm Group 868.5 5.91%

 

*What is a relative strength index?

Relative strength index is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.

An asset is viewed as overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a candidate for a possible pullback. Conversely, if the RSI approaches 30, it is an indication that the asset may be oversold and may become undervalued.

**What is the significance of 52-week highs and lows?

One popular strategy is to buy when shares exceed 52-week highs and sell when they fall below 52-week lows.

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 Bank S.A. 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.