As of March 20, 2025, two stocks in the consumer staples 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.
Compania Cervecerias Unidas, S.A. (NYSE:CCU)
- The company's stock gained around 18% over the past month and has a 52-week high of $15.40.
- RSI Value: 80.7
- CCU Price Action: Shares of Compania Cervecerias Unidas gained 2% to close at $15.39 on Wednesday.
Celsius Holdings Inc (NASDAQ:CELH)
- On March 3, Celsius Holdings named Eric Hanson as President and COO. The company's stock gained around 25% over the past month and has a 52-week high of $98.85.
- RSI Value: 71.8
- CELH Price Action: Shares of Celsius Holdings gained 5% to close at $31.90 on Wednesday.
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Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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