Top Overbought Stocks of the Week: Real Estate and Regional Bank Showing Strong Momentum

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This week, investors have been shifting their focus away from Big Tech stocks and towards other overlooked sectors of the market. With the hope of a potential interest rate cut by the Federal Reserve, many investors are turning to more rate-sensitive sectors such as homebuilders and industrials. As a result, the Dow Jones Industrial Average reached a record high on Friday, driven by companies like Home Depot and Caterpillar.

Here at Extreme Investor Network, we have used our stock screener to identify stocks with a high 14-day relative strength index (RSI). An RSI above 70 can indicate overbought conditions, suggesting a possible near-term downturn. We specifically looked for stocks that have risen more than 5% this week, and we found some interesting names to keep an eye on.

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One of the most overbought names this week is PNC Financial, a regional bank based in Pittsburgh. With an RSI of around 73 and a 7.5% surge in share price this week, PNC Financial is hitting new highs. However, analysts are cautious as the stock is already trading close to its consensus price target, leaving little room for further upside.

Real estate investment trusts (REITs) are also at risk of a potential slide following this week’s rally. Companies like American Tower, Alexandria Real Estate Equities, and BXP have seen significant gains, but analysts remain skeptical about the sustainability of these price levels.

In the tech sector, glass manufacturer Corning surged more than 17% this week after raising its second-quarter guidance. With a 14-day RSI reading of around 79, the stock may be vulnerable to a correction. However, the company is benefiting from the demand for its optical connectivity products, driven by the artificial intelligence boom.

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