In trading on Thursday, shares of Western Union Co. (NYSE:WU) entered into overbought territory, changing hands as high as $18.945 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 Western Union Co., the RSI reading has hit 70.0 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 70.0.
Investors could look at WU's 70.0 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 WU shares:
Looking at the chart above, WU's low point in its 52 week range is $14.55 per share, with $22.03 as the 52 week high point — that compares with a last trade of $18.89.
WU operates in the Business Services & Equipment sector, among companies like Nielsen Holdings NV (NYSE:NLSN) which is down about 0.1% today and has a current RSI reading of 55.3. Below is a three month price history chart comparing the stock performance of WU, versus NLSN.
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