Stocks including United Airlines and Morgan Stanley have seen immense buying on Wall Street this week and could be in store for a pullback. Equities are rebounding from a sluggish start to the week on Friday , with both the S & P 500 and Nasdaq Composite rallying to fresh all-time highs. These moves were boosted by a strong rise in technology stocks including Amazon, Microsoft and Nvidia, ahead of their respective quarterly results.
However, some companies may have gotten ahead of themselves. CNBC Pro screened for stocks that are technically considered overbought when measured by their 14-day relative strength index, or RSI. Stocks with a 14-day RSI measuring above 70 are typically viewed as overbought, signaling a pullback may be looming, while a 14-day RSI below 30 indicates a stock is oversold and may move higher.
United Airlines stock has surged more than 82% in 2024, and has a 14-day RSI of 85.9, which is the second-highest reading on the list. The airline stock benefited from better-than-expected third-quarter results last week.
United executives said it could potentially buy back as much as $1.5 billion worth of stock , which would be its first stock repurchase since before the Covid-19 pandemic. Eighty-seven percent of analysts polled by FactSet maintain a buy rating on United Airlines stock, with their average price targets implying roughly 20% upside over the next 12 months.
UAL YTD mountain United Airlines stock. Morgan Stanley stock is also overbought this week, w.
