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Stocks Reached An Overbought Condition: McDonald’s Corporation (MCD), Airgas, Inc. (ARG), Qihoo 360 Technology Co Ltd (QIHU)

 

For seasonal as well as new trader, the RSI, Relative Strength Index is the key concept to learn. This technical indicator is perhaps the most important thing one can adopt to advance your trading career. In general, when RSI reaches 70 the stock is considered overbought. RSI value below 30 indicates the stock has entered an oversold condition.

RSI is a leading indicator as it is useful to predict with accuracy where price is going. No indicator will be always right however, RSI will give you revealing signs that will provide you a view about the strength of a trend and the possibility of trend changes. Traders who make steady profits take into account the aspect of time, price and momentum and understanding RSI is a key to that end.

McDonald’s Corporation (NYSE:MCD) is at 72.34, representing overbought territory. The stock is up 6.94% in one month through last close, to $117.84, showing a 6.94% return during the past three months. The share price is up from fifty two week low with 39.13% and low from fifty two week high with -0.34%. It stands 6.67 % above the average-price of 50 days and 2.93% compared with the SMA 20.

Airgas, Inc. (NYSE:ARG)’s RSI reading has hit 84.35. The stock is up 30.11% in one month through last close, to $137.55, showing a 44.54% return during the past three months. The share price is up from fifty two week low with 60.48% and low from fifty two week high with -0.77%. It stands 23.57% above the average-price of 50 days and 0.19% compared with the SMA 20.

Qihoo 360 Technology Co Ltd (NYSE:QIHU) has a RSI reading of 77.34, with a 1-year total return of 29.59% and a six-month return of 0.97%. The stock is up 12.46% in one month through last close, to $71.95, showing a 57.96% return during the past three months. The share price is up from fifty two week low with 72.69% and low from fifty two week high with -0.96%. It stands 16.80% above the average-price of 50 days and 4.83% compared with the SMA 20.