In trading on Tuesday, shares of Madison Square Garden Co (NASDAQ:MSG) entered into overbought territory, changing hands as high as $29.00 per share. We define overbought territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be overbought if the RSI reading rises above 70. In the case of Madison Square Garden Co , the RSI reading has hit 71.2 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 47.7.
Investors could look at MSG's 71.2 reading as a sign that the recent heavy buying is overdue to take a breather, which could bring a pullback in the stock. The chart below shows the one year performance of MSG shares:
Looking at the chart above, MSG's low point in its 52 week range is $21.12 per share, with $30.21 as the 52 week high point — that compares with a last trade of $28.99.
MSG operates in the Entertainment sector, among companies like Rentrak Corp. (NASDAQ:RENT) which is up about 0.1% today and has a current RSI reading of 50.3. Below is a three month price history chart comparing the stock performance of MSG, versus RENT.
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