1. Two consumer staples stocks show momentum warning signs for investors. 2. Compania Cervecerias Unidas' RSI is 80.7, indicating overbought status. 3. Celsius Holdings' stock has an RSI of 71.8, also considered overbought. 4. Both stocks experienced significant price gains in the past month. 5. Investors advised to be cautious with overbought assets in the sector.
High RSI values indicate overbought conditions, which may lead to corrections. Historically, overbought stocks like CCU and CELH often face price retractions.
The mention of the consumer staples sector indicates broader market health. Stocks in this sector affect overall S&P 500 performance, warranting attention from traders.
The signals from RSI typically prompt quick sell-offs in overbought environments. For instance, past corrections in similar situations have occurred rapidly, affecting investor sentiment.