As of Jan. 29, 2024, three stocks in the consumer discretionary sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here's the latest list of major overbought players in this sector.
QuantaSing Group Limited (NASDAQ:QSG)
- On Jan. 18, QuantaSing said it launched private label Chinese Baijiu brand YUNTING. The company's stock jumped around 113% over the past month and has a 52-week high of $28.99 .
- RSI Value: 71.93
- QSG Price Action: Shares of QuantaSing Group gained 11% to close at $3.32 on Friday.
Flexsteel Industries, Inc. (NASDAQ:FLXS)
- On Jan. 11, Flexsteel Industries provided preliminary second-quarter fiscal 2024 results and a financial outlook for the remainder of fiscal year 2024 and fiscal year 2025. "While macroeconomic conditions combined with discretionary consumer spending shifts away from home furnishings continue to present headwinds to the industry, our growth initiatives are enabling us to profitably grow despite difficult conditions," said CEO Jerry Dittmer. The company's stock gained around 53% over the past month and has a 52-week high of $30.99.
- RSI Value: 77.59
- FLXS Price Action: Shares of Flexsteel Industries rose 1.5% to close at $28.78 on Friday.
InterContinental Hotels Group PLC (NYSE:IHG)
- The company's stock gained around 5% over the past month and has a 52-week high of $96.80.
- RSI Value: 70.13
- IHG Price Action: Shares of InterContinental Hotels fell 0.2% to close at $95.81 on Friday.
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