One of investors' most challenging questions is when to sell a winning stock. No one ever went broke taking profits, but exiting a high-flying stock too early can cause FOMO and create the temptation to chase. On the other hand, high-flying stocks eventually get too close to the sun, and it’s preferable to take profits before this Icarus moment. Traders often use technical indicators to spot changes in momentum before prices can react, and today, we’ll examine three stocks sending signals that it might be t ...

RT Kraken Pro (@krakenpro)What is Relative Strength Index and why do traders care❓It’s a tool for spotting potential reversals.▪️ When RSI is high, the asset may be overbought. Momentum could slow.▪️ ️When it’s low, it may be oversold. A bounce might follow.💡 RSI shows when price moves get stretched beyond balance. ...

📈 What is RSI?RSI (Relative Strength Index) is a momentum indicator used in technical analysis to measure the speed and change of price movements. It helps traders identify overbought or oversold conditions in a market.RSI ranges from 0 to 100⬆️ Above 70 = Overbought (price may drop)⬇️ Below 30 = Oversold (price may rise) ...

Market Sentiment - Tariff uncertainty has subsided, contributing to market's climb near all-time highs [2] - Optimism in the markets is fueled by hopes of reaching deals and lower tariff levels than initially discussed [2] - Inflation appears to be trending in the right direction, although it has recently stagnated [2] Valuation and Earnings - S&P 500's PE ratio has surged past 23 [3] - Current earning seasons could set the path for the remainder of the year [3] Technical Indicators - Relative Strength Index (RSI) is used to assess whether a stock is overbought or oversold [1] - RSI has climbed above 70 several times recently, indicating overbought conditions [1]

Group 1 - Nvidia Corp became the first company in history to surpass a $4 trillion market capitalization, with shares nearing their all-time high of $167.89 [1] - The stock has seen significant trading activity, with 19,582,022 calls and 12,020,483 puts traded over the last 10 sessions, making it the most active equity in options trading [2][3] - Nvidia's stock has increased by 22% in 2025 and 27% year-over-year, but the 14-Day Relative Strength Index (RSI) is above 75, indicating potential overbought conditions [5] Group 2 - The 10-day call volume for Nvidia reached 36,302,709, while put volume was 21,877,999, totaling 58,180,708 [6] - Options pricing reflects lower-than-usual volatility expectations, with a Schaeffer's Volatility Index (SVI) of 36% ranking in the 2nd percentile of its annual range [7]

Core Viewpoint - Oracle Corporation's shares experienced a significant rally of nearly 20% over three days due to a strong earnings report and positive guidance, but are now considered extremely overbought, leading to a potential sell-off [1]. Group 1: Stock Performance - Oracle shares gave back some recent gains after a substantial rally [1]. - The stock is currently classified as overbought, which typically precedes a reversal and sell-off [1]. Group 2: Trading Indicators - Various indicators are used to measure stock momentum, with five popular indicators identified on Oracle's chart [4]. - The Bollinger Band indicates that the stock is overbought when it trades above two standard deviations of the 20-day moving average [5]. - The Relative Strength Index (RSI) and Rate of Change (ROC) are two indicators that signal overbought conditions when they exceed certain thresholds [7]. - Stochastics and Moving Average Convergence Divergence (MACD) also indicate overbought conditions when their averages approach upper limits [8]. Group 3: Trading Strategies - Newer traders often use multiple indicators in hopes of improving results, but this can lead to confusion [9]. - Successful traders understand that trading can be simplified by focusing on a few key indicators rather than overwhelming themselves with many [10].

Core Viewpoint - AbbVie Inc. (ABBV) is experiencing an upward trend in its stock price, gaining over 12% in the past week, but is now considered overbought, which may attract sellers and pressure the stock lower [1][2]. Group 1: Stock Performance - AbbVie has been trading higher, with a notable increase of more than 12% in the past week [1]. - The stock is currently classified as overbought, indicating that it has moved above its normal trading range [1]. Group 2: Market Dynamics - The concept of reversion to the mean suggests that an overbought stock like AbbVie may experience a downward movement, prompting some traders to sell in anticipation of this trend [2]. - The Relative Strength Index (RSI) is highlighted as a popular momentum indicator, with a default time period of 14 days, which currently shows neutral momentum for AbbVie [2][4]. Group 3: Technical Analysis - A 14-day RSI indicates that today's price is roughly the same as it was two weeks ago, not reflecting the recent rally [4]. - Adjusting the RSI time period from 14 to 5 days reveals that AbbVie shares are very overbought, suggesting a potential pause or end to the rally [5].

Group 1: Market Overview - As of March 19, 2025, two stocks in the consumer discretionary sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating that a stock may be overbought [2] Group 2: Company Analysis - Honda Motor Co Ltd (HMC) - Honda Motor reported a stock price increase of approximately 12% over the past month, reaching a 52-week high of $37.90 [5] - The RSI value for Honda Motor is 71.5, indicating it may be overbought [5] - On the latest trading day, Honda Motor's shares gained 1.4%, closing at $30.41 [5] Group 3: Company Analysis - Yum China Holdings Inc (YUMC) - Yum China appointed Adrian Ding as Chief Financial Officer, highlighting his significant contributions over the past five months [5] - The company's stock has increased around 14% in the last month, achieving a 52-week high of $53.83 [5] - Yum China's RSI value is 71.8, suggesting it may also be overbought [5] - On the latest trading day, Yum China's shares rose by 0.7%, closing at $53.69 [5]