In trading on Tuesday, shares of Zions Bancorporation (NASDAQ:ZION) entered into overbought territory, changing hands as high as $18.41 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 Zions Bancorporation, the RSI reading has hit 73.2 — by comparison, the RSI reading for the S&P 500 ETF (SPY) is presently 68.5.
Investors could look at ZION's 73.2 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 ZION shares:
Looking at the chart above, ZION's low point in its 52 week range is $13.18 per share, with $25.60 as the 52 week high point — that compares with a last trade of $18.37.
ZION operates in the Banking & Savings sector, among companies like Popular Inc. (NASDAQ:BPOP) which is up about 3% today and has a current RSI reading of 68.7. Below is a three month price history chart comparing the stock performance of ZION, versus BPOP.
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