In trading on Tuesday, shares of ADA-ES Inc (ADES) entered into overbought territory, changing hands as high as $22.86 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 ADA-ES Inc, the RSI reading has hit 70.1 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 59.7.
Investors could look at ADES's 70.1 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 ADES shares:
Looking at the chart above, ADES's low point in its 52 week range is $7.58 per share, with $24.92 as the 52 week high point — that compares with a last trade of $22.75.
ADES operates in the Specialty Chemicals sector, among companies like American Pacific Corp. (APFC) which is up about 9.7% today and has a current RSI reading of 57.6. Below is a three month price history chart comparing the stock performance of ADES, versus APFC.
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