RSI Entering Overbought Zone: A Cautionary Sign?

The Relative Strength Index (RSI) is a popular technical indicator used to gauge a stock's recent price action. When the RSI enters the overbought zone (above 70), it can be a warning sign that the stock is due for a correction. A high RSI reading indicates: - Overwhelming buying pressure - Potential for a price reversal - Increased likelihood of a pullback While not a sell signal, an overbought RSI can prompt investors to exercise caution and consider adjusting their strategies to manage potential downside risk.