In trading on Thursday, shares of MEMC Electronic Materials, Inc. (WFR) entered into overbought territory, changing hands as high as $4.93 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 MEMC Electronic Materials, Inc., the RSI reading has hit 70.2 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 72.1.
Investors could look at WFR's 70.2 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 WFR shares:
Looking at the chart above, WFR's low point in its 52 week range is $3.65 per share, with $15.04 as the 52 week high point — that compares with a last trade of $4.88.
According to the ETF Finder at ETF Channel, WFR makes up 9.84% of the Solar Energy ETF (AMEX:KWT) which is trading relatively unchanged on the day Thursday.
WFR operates in the Semiconductors sector, among companies like Diodes, Inc. (NASDAQ:DIOD) which is down about 0.4% today and has a current RSI reading of 61.2. Below is a three month price history chart comparing the stock performance of WFR, versus DIOD.
This Article's Word Cloud:BelowDIODDaysDefinitionETFsElectronicIndexInvestorsMEMCMaterialsRelativeSevenStrengthThursdayaboutaboveamonganalysischartcompaniescomparisoncouldhandshighhistorymomentumoperatesotheroverboughtoverdueperformancepointpullbackrangereadingrecentscalesharesharesspecialstockstocksterritorythattradingweekwhatwhichwithzero
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.