Looking for overbought the US stocks? These are stocks that have risen strongly in recent weeks and may be trading at stretched technical levels. While strong momentum can continue, extreme conditions often lead to consolidation or pullbacks.
Overbought US stocks list
This list highlights US stocks that show signs of overextended price action based on multiple technical indicators. Stocks are sorted by recent performance, highlighting the strongest and potentially most extended movers.
Overbought stocks often reflect strong demand and positive sentiment, but they can also indicate that buyers have become exhausted in the short term. This can lead to consolidation, pullbacks, or increased volatility.
How to identify overbought stocks
Investors and traders typically look for a combination of high RSI values, strong short-term performance, and price levels significantly above trend indicators such as moving averages. Combining multiple signals helps avoid false positives.
The US Overbought Stocks Screener
These are the rules used to build this stock list.
Methodology
We identify overbought stocks using a combination of technical indicators, including high RSI levels, strong recent performance, and price extensions above key moving averages. This multi-factor approach helps isolate stocks that are not just trending higher, but potentially overextended.
Screener Filters
Liquidity Filters
Average Volume above 50K
We require a minimum average daily volume of 50,000 shares to ensure sufficient liquidity for investors.
Market Cap above $300M
We exclude very small companies to avoid illiquid and highly speculative stocks.
technical
RSI above 70
A high RSI indicates strong upward momentum and potential overbought conditions.
Price above 50-Day Moving Average
Confirms that the stock is in a strong uptrend and potentially extended above its trend.
Distance above 50-Day MA > 10%
Measures how far the stock has moved above its trend, helping identify stretched setups.
Momentum Filters
1-Month Performance above 15%
Strong recent gains help identify stocks that may be extended in the short term.
1-Week Performance above 10%
Strong recent gains help identify stocks that may be extended in the short term.
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FAQ
What does overbought mean in stocks?
Overbought usually refers to stocks that have risen sharply and may be extended relative to recent trading behavior. Traders monitor these names for either continued strength or signs of exhaustion.
Can overbought stocks continue rising?
Yes. Strong trends can remain overbought for longer than expected. Many traders therefore use overbought signals as context rather than automatic sell signals.
How does the Overbought Stocks screen work?
We identify overbought stocks using a combination of technical indicators, including high RSI levels, strong recent performance, and price extensions above key moving averages. This multi-factor approach helps isolate stocks that are not just trending higher, but potentially overextended.
What should investors look for when using the Overbought Stocks screen?
Investors and traders typically look for a combination of high RSI values, strong short-term performance, and price levels significantly above trend indicators such as moving averages. Combining multiple signals helps avoid false positives.