Stocks quoted in this article:
Note - I am out of the office this week but I asked my colleagues to re-post some thoughts from the past for the benefit of new readers and to perhaps spur some comments and discussion...
One of the indicators I frequently discuss in this space is the Relative Strength Index (RSI). This offers a reading of how overbought or oversold a stock or index is relative to its own price action. While the interpretation may seem simple, the behavior can vary over time and differs for overbought readings and oversold readings. The links below delve into that issue and offer some perspective on this topic... ~ Nick