Top 4 Health Care Stocks That May Crash This Month
Portfolio Pulse from Avi Kapoor
Four health care stocks are showing signs of being overbought according to their Relative Strength Index (RSI) values, which may indicate a potential short-term pullback. Esperion Therapeutics (ESPR), Celldex Therapeutics (CLDX), Verrica Pharmaceuticals (VRCA), and MacroGenics (MGNX) have all seen significant price increases recently, with their RSI values exceeding the typical overbought threshold of 70. This suggests that these stocks may experience a downturn in the near future as traders who rely on momentum indicators might consider taking profits.
December 20, 2023 | 1:31 pm
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NEGATIVE IMPACT
Celldex Therapeutics' stock rose after a public offering, with a 39% increase over the past month and an RSI of 79.37, signaling potential overbought status.
CLDX's RSI is well above the overbought threshold, which often precedes a short-term downward correction as investors may decide to take profits.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
Esperion Therapeutics' stock surged after FDA updates, with a 59% increase over five days and an RSI of 85.02, indicating it may be overbought.
The high RSI value significantly above 70 suggests that ESPR is overbought, which could lead to a short-term price decline as traders might sell to capture gains.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
MacroGenics' stock climbed after reporting a profit, with a 21% increase over the past month and an RSI of 70.62, indicating it may be slightly overbought.
MGNX's RSI is close to the overbought level, which could result in a minor pullback if traders following momentum indicators decide to lock in gains.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 85
NEGATIVE IMPACT
Verrica Pharmaceuticals' stock increased following positive trial results, with a 49% gain over five days and an RSI of 71.93, hinting at overbought conditions.
VRCA's RSI just above 70 suggests a mild overbought condition, which could lead to some investors selling off their shares, potentially causing a price drop.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 90