In trading on Monday, shares of Kronos Worldwide Inc (NYSE:KRO) entered into overbought territory, changing hands as high as $22.915 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 Kronos Worldwide Inc, the RSI reading has hit 70.1 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 62.8.
Investors could look at KRO's 70.1 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 KRO shares:
Looking at the chart above, KRO's low point in its 52 week range is $14.16 per share, with $34.50 as the 52 week high point — that compares with a last trade of $22.93.
KRO operates in the Specialty Chemicals sector, among companies like Praxair, Inc. (NYSE:PX) which is down about 0.8% today and has a current RSI reading of 63.1. Below is a three month price history chart comparing the stock performance of KRO, versus PX.
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