In trading on Thursday, shares of Banro Corporation (AMEX:BAA) entered into overbought territory, changing hands as high as $4.47 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 Banro Corporation, the RSI reading has hit 70.2 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 70.0.
Investors could look at BAA'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 BAA shares:
Looking at the chart above, BAA's low point in its 52 week range is $2.45 per share, with $5.27 as the 52 week high point — that compares with a last trade of $4.42.
BAA operates in the Precious Metals sector, among companies like Royal Gold, Inc. (NASDAQ:RGLD) which is up about 0.4% today and has a current RSI reading of 46.0. Below is a three month price history chart comparing the stock performance of BAA, versus RGLD.
This Article's Word Cloud:BanroCorporationDaysDefinitionEarningsIndexInvestorsPriceRGLDRelativeRoyalSevenSpecialStrengthTradedaboveanalysisbreakbuyingchangingchartcomparisoncouldenteredheavyhighhistoryintomonthoverboughtoverdueperformancepointrangereadingsectorsharesharessignstocktaketechnicalterritorythattradingusedversusweekwhichwith
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.