This week, Wall Street experienced a whirlwind of activity, highlighted by geopolitical developments and fluctuations in stock performance. After a rally on Wednesday and Thursday—prompted by President Donald Trump easing his stance on potential tariffs against several European countries—the S&P 500 ultimately closed the week with losses. Despite this overall downturn in index level, certain individual stocks have surged and are now categorized as overbought.
Using CNBC Pro’s stock screener, analysts identified several stocks that display overbought characteristics as indicated by their 14-day relative strength index (RSI). Generally, an RSI reading above 70 signals that a stock may be overbought, suggesting a possible pullback on the horizon, while readings below 30 indicate oversold conditions that could lead to a short-term bounce.
Leading the list of overbought stocks this week was gold mining giant Newmont, boasting an impressive 14-day RSI of 82.3. The company’s shares surged by more than 8% as gold prices soared amid ongoing geopolitical instability and anticipation of another U.S. interest rate cut. Spot gold approached a record high, nearing $5,000 per ounce on Friday, further boosting Newmont’s appeal.
Additionally, major memory products manufacturers Sandisk and Micron joined the ranks of overbought stocks, with impressive weekly gains of 16.6% and 10.7%, respectively. Sandisk’s significant performance was partly fueled by a warning from the research team at S3 Partners regarding a potential short squeeze, which has caused the stock to double in value this year alone. Remarkably, Sandisk’s shares have skyrocketed over 1,200% in the past year due to an accelerating demand for AI memory products that far exceeds current supply, earning the stock an RSI of 78.4. Analysts consistently maintain a buy rating, further sustaining investor confidence.
Another key player in the artificial intelligence sector, Advanced Micro Devices (AMD), has also been marked as overbought, with an RSI of 76.9 following a notably successful nine-day winning streak. AMD shares increased by more than 11.5% this week, continuing to capture investor interest amid the booming AI market.
Conversely, only three stocks showed signs of being technically oversold this week. Notably, Netflix faced a Pessimistic sentiment following its fourth-quarter earnings report, which narrowly surpassed analysts’ expectations. Although shares received a boost on Friday, they ended the week with a decline of 2.8%. With an RSI of approximately 26, Netflix may be approaching a potential rebound as it navigates through this challenging period.
As market participants continue to monitor these movements, the dynamics of overbought and oversold stocks will remain pivotal in guiding investment strategies in a tumultuous economic landscape.
