The Relative Strength Indicator (RSI) is a technical momentum indicator that charts the strength and weakness of a stock in an attempt to determine whether the stock is overbought or oversold. The RSI uses a 14 market-day timeframe and is measured on a scale from 0 to 100.
A stock is considered “overbought” when RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, a stock is considered “oversold” once it approaches the 30 level, meaning that it may be getting oversold and therefore likely to become undervalued
Relative Strength of the Dow Components
Here at Shine’s Room, our analysts have calculated the RSI Index for the Dow Jones components. Below is the latest chart using the past 14 market-day closing prices.
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