This morning's 5% move in Compass indicates a strong possibility for record highs in the future. Already overbought, the shares have crept up this particular leaderboard, as investors pile in following the news of a special dividend. After a move of this magnitude, we are likely to see a degree of selling, as has already been the case this morning; but so long as the longer-term trend in Compass is upwards, the bias remains towards further gains.
Supergroup, Balfour Beatty and Petrofac all continue to struggle this morning, with only the latter looking like it will exit oversold territory soon. The lesson here is that an overbought or oversold share does not necessarily indicate a sudden correctional move, and that shares can remain at relative strength index extremes for an extended period.