In trading on Thursday, shares of Endo Pharmaceuticals Holdings Inc (NASDAQ:ENDP) entered into overbought territory, changing hands as high as $34.89 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 Endo Pharmaceuticals Holdings Inc, the RSI reading has hit 70.2 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 56.3.
Investors could look at ENDP's 70.2 reading as a sign that the recent heavy buying is overdue to take a break, which could bring a pullback in the stock. The chart below shows the one year performance of ENDP shares:
Looking at the chart above, ENDP's low point in its 52 week range is $26.02 per share, with $44.53 as the 52 week high point — that compares with a last trade of $34.37.
According to the ETF Finder at ETF Channel, ENDP makes up 4.15% of the SPDR S&P Pharmaceuticals ETF (AMEX:XPH) which is trading lower by about 0.3% on the day Thursday.
ENDP operates in the Drugs & Pharmaceuticals sector, among companies like AmerisourceBergen Corp. (NYSE:ABC) which is up about 0.7% today and has a current RSI reading of 48.9. Below is a three month price history chart comparing the stock performance of ENDP, versus ABC.
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