As of Feb. 2, 2024, there are concerns about four stocks in the health care sector that could serve as a warning to investors who place significant value on momentum when making trading decisions.
The RSI, a momentum indicator, compares a stock’s strength on days when prices rise against its strength on days when prices fall. This indicator can provide traders with a better understanding of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here’s the latest list of major overbought players in this sector.
PepGen Inc. (PEPG)
- On Jan. 8, PepGen announced the dosing of the First Patient in CONNECT1-EDO51 Phase 2 clinical trial of PGN-EDO51 for duchenne muscular dystrophy patients amenable to Exon 51 skipping. The company’s stock surged approximately 79% over the past five days and has a 52-week high of $20.00.
- RSI Value: 84.56
- PEPG Price Action: Shares of PepGen gained 23.5% to close at $12.39 on Thursday.
CalciMedica, Inc. (CALC)
- On Jan. 22, CalciMedica announced a private placement of up to approximately $55 million. The company’s stock gained around 55% over the past month and has a 52-week high of $8.59.
- RSI Value: 70.24
- CALC Price Action: Shares of CalciMedica fell 16.7% to close at $6.20 on Thursday.
Oramed Pharmaceuticals Inc. (ORMP)
- On Jan. 22, Oramed Pharmaceuticals said that the company and Unit entered into a joint venture agreement with Hefei Tianhui Biotech and Technowl. The company’s stock gained approximately 24% over the past five days and has a 52-week high of $5.25.
- RSI Value: 70.03
- ORMP Price Action: Shares of Oramed Pharmaceuticals fell 5.5% to close at $2.83 on Thursday.
FibroGen, Inc. (FGEN)
- On Jan. 25, FibroGen announced graduation and completion of the pamrevlumab experimental arm in the Pancreatic Cancer Action Network’s Precision PromiseSM Phase 2/3 adaptive platform trial, which evaluates pamrevlumab in combination with the chemotherapy treatments gemcitabine and nab-paclitaxel for patients with metastatic pancreatic ductal adenocarcinoma. The company’s stock surged approximately 104% over the past five days and has a 52-week high of $25.69.
- RSI Value: 86.52
- FGEN Price Action: Shares of FibroGen gained 23.4% to close at $2.37 on Thursday.
Ensure your trading decisions are well-informed, especially when considering potential pitfalls in the health care stock sector.
Source: Amazon, Apple and 3 Stocks to Watch Heading into Friday