As of Jan. 10, 2025, two stocks in the health care sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here's the latest list of major overbought players in this sector.
Sana Biotechnology Inc (NASDAQ:SANA)
- On Tuesday, Sana Biotechnology released the initial results from a first-in-human study transplanting UP421, an allogeneic primary islet cell therapy engineered with Sana's hypoimmune (HIP) technology, into a type 1 diabetes patient without the use of any immunosuppression. The study was conducted in partnership with Uppsala University Hospital. The company's stock surged around 162% over the past five days and has a 52-week high of $12.00.
- RSI Value: 73.4
- SANA Price Action: Shares of Sana Biotechnology closed at $4.30 on Wednesday.
Mesoblast Ltd (NASDAQ:MESO)
- On Dec. 19, Mesoblast announced the U.S. Food and Drug Administration (FDA) approved Ryoncil. Ryoncil is the first FDA approved therapy for children aged 2 months and older with steroid-refractory acute graft versus host disease (SR-aGvHD).. The company's stock gained around 53% over the past month and has a 52-week high of $22.00.
- RSI Value: 77.8
- MESO Price Action: Shares of Mesoblast fell 4% to close at $17.18 on Wednesday.
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