Shares RSIs, highs and lows

A regular look at shares trading close to significant levels.

This morning Bwin.Party Digital Entertainment (a contender for one of the silliest names in the FTSE 350) is on our oversold list. It has slumped below 128p and is now heading towards 110p, a level that has stemmed the selling so far this year. Meanwhile the same names remain on the list; a sign that these shares have yet to see significant buying.

A similar situation prevails among the overbought names, with Compass’s ongoing situation particularly interesting. It seems there remains a desire to push these shares higher.

Relative Strength Index (RSI)*


Share Price



Share Price


SuperGroup 977.5 19.89 Salamander Energy 145 81.29
Drax Group 598 21.42 National Grid 885.5 79.78
Bwin.Party Digital Entertainment 114.6 21.73 BG Group 1279.5 79.18
Lonmin 237.3 22.95 Aggreko


Renishaw 1625 23.37 Compass Group 1006 77.96
Balfour Beatty


23.73 United Utilities Group 855.5 75.04
Mothercare 138.25 24.19 Unilever 2699 74.29


United Utilities is pushing towards all-time highs, aiming to replicate the achievement of National Grid, which continues to hold on around all-time highs. For the latter, the modest selling that has taken place has been insufficient to shake it from oversold levels, and it seems 880p is now providing a degree of support.



Share Price

% off 52-week high


Share Price

% off 52-week low

United Utilities Group 855.5 -0.23% Kenmare Resources 10.75 0.00%
Associated British Foods 3075 -0.52% Lonmin 237.3 0.30%
Reckitt Benckiser 5075 -0.88% Experian 1032 1.18%
Heritage Oil 314.9 -0.94% Mothercare


National Grid


-0.95% Ladbrokes 130.6 1.79%
BP 505 -0.98% Dairy Crest Group 457.3 2.51%
Imperial Tobacco Group 2659 -1.08% Dignity 1345 2.91%


*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.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.