Shares RSIs, highs and lows

Our regular look at shares trading at significant levels.

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.

Relative Strength Index (RSI)*


Share Price



Share Price


Chemring Group 217.5 18.01 Salamander Energy 145.25 87.57
Balfour Beatty 223.1 21.39 BG Group 1276 86.02
CSR 545.5 24.67 InterContinental Hotels Group 2215 83.98
WS Atkins 1271 26.83 Provident Financial 2104 77.36
Serco Group 352.1 28.50 Premier Oil 348.3 76.64
Paragon Group of Cos 361.9 28.55 Royal Dutch Shell 2374.5 76.09
N Brown Group 464.3 28.88 Heritage Oil 314.8 74.54


The same companies continue to hover near their 52-week highs and lows, but National Grid is edging ever higher. If we do breach the long-term resistance around 850p this could be a signal of a further rally.



Share Price

% off 52-week high


Share Price

% off 52-week low

National Grid 848 -0.18% Mothercare 164.25 1.55%
Royal Dutch Shell 2374.5 -0.27% Experian 1058 3.73%
AZ Electronic Materials SA 403.1 -0.47% Tesco 288.9 3.73%
InterContinental Hotels Group 2215 -0.76% Informa 487.3 4.68%
Heritage Oil


-0.98% Centrica 316.9 4.76%
Imperial Tobacco Group 2579 -1.00% Dairy Crest Group 467.9 4.89%
United Utilities Group 818 -1.09% International Public Partnerships 130 5.26%


*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.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.