As of January 13, 2025, two key players in the industrial sector are Boeing Co (NYSE: BA) and Alaska Air Group Inc (NYSE: ALK). They are showing signs of caution to momentum-based investors. The reason is that the stocks are in overbought conditions at this point, based on their RSI values.
The RSI, a popular momentum indicator, measures the strength of a stock’s price action by comparing its performance on “up” days versus “down” days. When an RSI exceeds 70, the asset is often considered overbought, suggesting it may be due for a pullback.
Boeing Co (NYSE: BA) and Alaska Air Group Inc (NYSE: ALK) are the two key players in the industrial sector
Boeing Co (NYSE: BA)
Boeing shares have had modest gains, increasing around 1% over the last month. The RSI on the stock is currently 73.3, overbought, which indicates that there is a chance for a short-term reversal of the price. The attention of investors has been riveted to the fourth-quarter 2024 financial report by Boeing, scheduled to be published on Tuesday, January 28.
Boeing shares closed at $172.00 on Friday, showing a small 0.1% gain for the day. Notably, the stock has reached a 52-week high of $228.28, further highlighting its strong upward momentum.
Alaska Air Group Inc (NYSE: ALK)
Alaska Air Group, meanwhile, had its stock gain around 9% over the past month and is one that Susquehanna analyst Christopher Stathoulopoulos just upgraded from Neutral to Positive while raising the price target from $45 to $95.
Alaska Air’s RSI currently stands at a high reading of 76.8, deep into overbought levels. It closed at $68.18 on Friday, up 2.9% over the day’s performance, notching just shy of its 52-week high mark of $69.10.
Investor Takeaway
For momentum-focused traders, high RSI values on Boeing and Alaska Air may signal that these equities will continue to see elevated short-term volatility. It is essential for such traders to pay close attention to upcoming earnings releases and broader market trends in deciding entry or exit points on these positions.
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