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Stocks Crossing Into Overbought Territory: Acorn International (ATV), Giga-tronics (GIGA), Dehaier Medical Systems (DHRM)

 

Relative Strength Index or RSI is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. A trader using RSI should be aware that large surges and drops in the price of an asset will affect the RSI by creating false buy or sell signals. The RSI is best used as a valuable complement to other stock-picking tools. The RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.

Acorn International, Inc. (ADR) (NYSE:ATV) is now in overbought territory with an RSI value of 89.59. The stock is up 323.33% in one month through last close, to $19.20, showing a 220.00% return during the past three months. The share price is up from fifty two week low with 984.75% and low from fifty two week high with 12.550%. It stands 342.80% below the average-price of 50 days and 396.96% compared with the SMA 20.

Giga-tronics, Incorporated (NASDAQ:GIGA) has a RSI reading of 89.29, with a 1-year total return of 54.79% and a six-month return of 30.96%. The stock is up 128.23% in one month through last close, to $2.58, showing a 69.74% return during the past three months. The share price is up from fifty two week low with 200.00% and low from fifty two week high with -18.10%. It stands 138.49% above the average-price of 50 days and 126.32% compared with the SMA 20.

Dehaier Medical Systems Ltd (NASDAQ:DHRM) currently has an RSI of 83.19. The stock is up 71.75% in one month through last close, to $0.37, showing a 84.24% return during the past three months. The share price is up from fifty two week low with 149.18% and low from fifty two week high with -23.04%. It stands 90.32% above the average-price of 50 days and 87.17% compared with the SMA 20.