10 Overbought Stocks Ready For A Pullback
KIRK has been setting multi-year highs. Recently the volume has picked up too. How long can this rally last ? RSI indicates the stock in overbought zone for a while now. $5.00 should provide first level of resistance from here. However ideal time to short this stock would be on the first sell-off to begin. Be patient or get ready to be squeezed.
APAC is another KIRK like chart. Volume has seen a huge spike up lately. The stock has legs to keep going higher. Be patient and wait for sellers to pour in before shorting it.
DTSI has breached through multiple resistance barriers. However it was a weak stock today with constant selling. This could be the beginning of the trend reversal. The volume also started fading today due to lack of new buying interest. I am short this position and expect we go lower tomorrow. RSI clearly indicates overbought levels.
DMND is putting up some impressive runups. It broke past $27.00 resistance easily. This stock is now in overbought territory, but has room to reach $30.00 – $32.00 levels. Keep watching.
CLWR is going to hit some key resistance levels now. $5.35 and $5.60 to begin with. If it fails to break past these levels, this provides an excellent shorting opportunity. Every pop has eventually been sold into. I see nothing different this time around.
NWY is a slow steady boring stock. It is clearly in overbought zone, but has no strong resistance until $5.00. Can it go that far ? Keep watching for trend reversal to short into.
SNX saw its RSI crossover below 70 indicating trend reversal. Another key aspect was the stock broke below $20.00 support. More selling to follow. Potential short with stop below on the break above $20.00
NTES is an overbought stock that has crushed through all key resistances. This can keep going higher and not a safe short yet. Keep watching.
FORM is also seeing a trend reversal, with RSI falling below 70. The stock found support at $18.00. If the stock breaches below $18.00, this is a potential short trade.
PANL saw 2 consecutive days of sell-off. This could be the signal shorts are looking at. The stock has almost doubled recently and now ready to pull back. $9.00 is the first support level. Potential short below $9.00
