NVDA - 4 Overbought Household Names Time for a Pullback? | Benzinga
Amidst the ongoing surge led by the semiconductor sector, the Artificial Intelligence revolution, and Nvidia Corp. (NASDAQ: NVDA), which is steering the S&P 500 to new heights, several overbought scenarios have developed in individual stocks. These scenarios may have sparked investor concerns over potential overvaluations, resulting in pullbacks and corrections in select stocks.
Numerous stocks have shown extreme overbought signals, with the market hovering near record levels, as the Relative Strength Index (RSI) indicates. This measure evaluates the recent magnitude of price changes to determine overbought or oversold conditions within a specified timeframe.
In light of this, stocks such as General Electric (NYSE: GE), Chipotle Mexican Grill (NYSE: CMG), FedEx (NYSE: FDX), and The Gap (NYSE: GPS) have surfaced as overbought contenders within the U.S. market. This signals a potential predisposition to pullbacks, as investors may opt to lock in profits.
Meanwhile, the broader market continues to ascent to new highs, with the SPY ETF closing just 0.55% below its all-time peak last week and the QQQ tech sector ETF concluding the week merely ...