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Oversold And Overbought Industries: A Closer Look At The RSI(14) Indicator

Interested in finding stocks that have shown significant up- and downward momentum during recent sessions? The following is a list of the most overbought and oversold industries, based on the Relative Strength (RSI(14)) indicator.

Extreme RSI(14) readings can placed in two categories:

1. Above 70 = Technically overbought (bullish momentum)
2. Below 30 = Technically oversold (bearish momentum)

All of the industries mentioned below contain companies with very high or very low RSI(14) readings. (Note that these readings represent an average of all the companies in the industry)

We've listed the top 10 most overbought and most oversold industries below.

For more information on each industry, click on any of the links to access a list of stocks included in the industry calculation. (Premium Members: Download the entire list of industries on the top right)

Bullish Momentum: Industries With The Highest RSI(14) Value

Department Stores: Avg RSI(14) = 65.26 (9 companies)
Auto Dealerships: Avg RSI(14) = 64.76 (11 companies)
Home Furnishing Stores: Avg RSI(14) = 64.69 (6 companies)
Long-Term Care Facilities: Avg RSI(14) = 63.68 (12 companies)
Home Health Care: Avg RSI(14) = 62.1 (6 companies)
Silver: Avg RSI(14) = 61.63 (10 companies)
Jewelry Stores: Avg RSI(14) = 61.47 (6 companies)
Surety & Title Insurance: Avg RSI(14) = 61.12 (6 companies)
Industrial Property REITs: Avg RSI(14) = 60.5 (15 companies)
Food Producers: Avg RSI(14) = 60.4 (12 companies)

Oversold? Industries With The Lowest RSI(14) Readings

Major Airlines: Avg RSI(14) = 36.62 (6 companies)
Education & Training Services: Avg RSI(14) = 42.35 (27 companies)
Trucking: Avg RSI(14) = 43.68 (20 companies)
Aluminum: Avg RSI(14) = 43.79 (6 companies)
Regional Airlines: Avg RSI(14) = 43.87 (11 companies)
Electric Utilities: Avg RSI(14) = 44.32 (47 companies)
Air Delivery & Freight Services: Avg RSI(14) = 45.13 (10 companies)
General Entertainment: Avg RSI(14) = 45.48 (7 companies)
Sporting Goods: Avg RSI(14) = 45.64 (6 companies)
Shipping: Avg RSI(14) = 45.9 (37 companies)

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.