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.

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 and 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 and 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 and 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)