In trading on Thursday, shares of Bridgepoint Education, Inc. (NYSE:BPI) entered into overbought territory, changing hands as high as $25.48 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 Bridgepoint Education, Inc., the RSI reading has hit 70.4 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 70.0.
Investors could look at BPI's 70.4 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 BPI shares:
Looking at the chart above, BPI's low point in its 52 week range is $15.70 per share, with $30.62 as the 52 week high point — that compares with a last trade of $25.49.
BPI operates in the Education & Training Services sector, among companies like Universal Technical Institute, Inc. (NYSE:UTI) which is up about 0.8% today and has a current RSI reading of 69.3. Below is a three month price history chart comparing the stock performance of BPI, versus UTI.
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