Top 3 Financial Stocks That May Plunge In May
1. Hanover Bancorp shows overbought RSI at 80, stock fell 1.4%. 2. AvidXchange to be acquired by TPG for $2.2 billion, RSI at 73.8. 3. Flywire reports strong EPS growth, RSI at 76.3, stock gained 3.3%.
FAQ
Why Neutral?
While some stocks have strong fundamentals, broader market indicators may suppress momentum. The performance of overbought stocks typically signals potential pullbacks.
How important is it?
The analysis pertains to momentum indicators which can guide S&P 500 traders, indicating mixed signals across sectors.
Why Short Term?
Momentum indicators may influence short-term trades but less impact long-term. Historically, overbought stocks often revert to mean within weeks.