Walmart, Starbucks among the most overbought stocks due for a pullback

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Walmart, Starbucks among the most overbought stocks due for a pullback
Stock MarketsKellogg CoWalmart Inc
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This week's recovery rally following last week's sell-off has led investors to buy key retail names and others.

A few stocks may be due for a pause or a pullback after Wall Street roared back this week following a global sell-off to start August. All three major averages are on pace to wrap up the week higher, with more positive economic data released this week spurring a recovery rally. The Nasdaq Composite is on track to see the largest percentage gains of the indexes, heading for a close that's 5% higher on the week.

Pro screened for S & P stocks with a high 14-day relative strength index. An RSI above 70 can indicate overbought conditions for a stock and potentially signal a near-term downturn. These stocks may have come too far, too fast in the comeback rally, according to technical analysis. Here are the most overbought names in the index: Starbucks is one of those names, having an RSI of about 72.6.

mountain 2024-08-12 Starbucks, week-to-date The Street has since reacted favorably to the leadership change, having renewed confidence in the company's revival. JPMorgan called Niccol a "one of one" hire for the coffee chain, and TD Cowen – along with others like Piper Sandler and Baird – decided to upgrade Starbucks in the move's aftermath.

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Stock Markets Kellogg Co Walmart Inc Starbucks Corp S&P 500 Index Dow Jones Industrial Average Nasdaq Inc Fortinet Inc Chipotle Mexican Grill Inc Brian Niccol Laxman Narasimhan S&P Global Inc Business News

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