The Relative Strength Index (RSI) is a valuable tool for investors, as it gauges the strength of a stock’s price movement. When the RSI surpasses 70, it often signals that an asset is overbought and may experience a short-term price correction. As of October 11, 2024, two prominent stocks in the industrials sector, Uber Technologies Inc (UBER) and SkyWest Inc (SKYW), are exhibiting RSI values above 70, potentially indicating a warning for momentum-focused investors.
Uber, which will hold its quarterly earnings call on October 31st, has seen a notable surge in its stock price, gaining approximately 11% over the past month. Its 52-week high stands at $82.14, and its current RSI value is 72.91. SkyWest, another major player in the sector, will host a conference call to discuss its third-quarter results on October 31st. The company’s stock has displayed impressive growth, rising about 19% over the past month, and has reached a 52-week high of $88.89. Its current RSI value is 74.68.
While these companies have shown significant momentum in recent weeks, the elevated RSI readings could suggest that their prices may be primed for a short-term pullback. Investors should carefully consider these signals and weigh them against other relevant factors before making investment decisions.
