Top 5 Financial Stocks That May Collapse

Author: Lisa Levin | December 30, 2022 07:35am

The most overbought stocks in the financial sector presents an opportunity to go short on these overvalued companies.

The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.

Here’s the latest list of major overbought players in this sector.

Banco Macro S.A. (NYSE:BMA)

• The company’s stock gained around 12% over the past month. The company’s stock has a 52-week high of $18.05 .
• RSI Value: 72.46
• BMA Price Action: Shares of Banco Macro dropped 1.5% to settle at $16.30 on Thursday and lost 0.1% in after-hours trading.

Trean Insurance Group, Inc. (NASDAQ:TIG)

• Trean Insurance Group recently announced a definitive agreement to be acquired by Altaris Capital Partners for $6.15 per share in cash. The company’s stock has a 52-week high of $9.14.
• RSI Value: 86.45
• TIG Price Action: Shares of Trean Insurance Group gained 0.3% to close at $6.00 on Thursday and lost 0.7% in after-hours trading.

Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG)

• Mitsubishi UFJ Financial’s shares jumped around 19% over the previous month. The company has a 52-week high of $6.78.
• RSI Value: 81.29
• MUFG Price Action: Shares of Mitsubishi UFJ Financial Group fell 1.2% to close at $6.58 on Thursday and gained 0.3% in after-hours trading.

Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG)

• Sumitomo Mitsui Financial Group shares jumped around 34% over the past six months. The company’s 52-week high is $8.09.
• RSI Value: 80.04
• SMFG Price Action: Shares of Sumitomo Mitsui Financial fell 0.9% to close at $7.92 on Thursday and lost 1.5% in after-hours trading.

ChoiceOne Financial Services, Inc. (NASDAQ:COFS)

• ChoiceOne Financial, last month, raised its quarterly dividend from $0.25/share to $0.26/share. The company has a 52-week high of $29.99.
• RSI Value: 79.36
• COFS Price Action: Shares of ChoiceOne Financial Services gained 0.4% to settle at $27.80 on Thursday.

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Posted In: BMA COFS MUFG SMFG TIG