In trading on Friday, shares of Molina Healthcare Inc (NYSE:MOH) entered into overbought territory, changing hands as high as $25.05 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 Molina Healthcare Inc, the RSI reading has hit 72.2 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 62.4.
Investors could look at MOH's 72.2 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 MOH shares:
Looking at the chart above, MOH's low point in its 52 week range is $13.93 per share, with $29.03 as the 52 week high point — that compares with a last trade of $25.39.
MOH operates in the Hospital & Medical Practitioners sector, among companies like Health Net, Inc. (NYSE:HNT) which is up about 1.4% today and has a current RSI reading of 69.4. Below is a three month price history chart comparing the stock performance of MOH, versus HNT.
This Article's Word Cloud:AMEXBelowDaysFridayHealthHealthcareInvestorsMolinaNYSEOfferRelativeSevenaboutaboveamonganalysisbelowchartcompaniescomparisonconsideredconversationcouldhandshighhistorymomentummonthoperatesoverboughtoverdueperformancepointpricepullbackrangereadingrecentscalesharesharesspecialstockterritorythatusingweekwhichwithzero
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.
Now Playing:
Learn About The RSI
Weekly Market Wrap: May 18, 2012
Daily Dividend Report: MNRO, MCD, CTL, MCK, HNZ, POR
Week Ahead Market Report: May 14, 2012
Weekly Market Wrap: May 11, 2012
Walmart Announces Earnings
Daily Market Wrap: May 24, 2012
