Data Insights

The 10 most overbought and oversold ASX 200 stocks – Week 24

Mon 17 Jun 24, 12:02pm (AEST)
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You know it's a pretty downbeat market when names like JB Hi-Fi (ASX: JBH) and Bendigo Bank (ASX: BEN) top the most overbought list.

The 14-day Relative Strength Index is a momentum indicator that measures the magnitude and speed of recent price changes to assess whether or not a stock is overbought or oversold.

An RSI of 70 or above is considered to be overbought, which means the stock is rising too quickly and likely to experience a pullback. Meanwhile, an RSI of 30 or below is considered to be oversold, which means the stock is falling too quickly and is likely to experience a rebound.

Based on this indicator, JB Hi-Fi is the most overbought stock on the ASX 200 with an RSI of 72.


Most Overbought ASX 200 Stocks

Ticker

Company

RSI

1-Month %

Close Price

Target price

Upside

JBH

JB Hi-Fi

72

9.2%

$63.28

$58.63

-7.3%

BEN

Bendigo and Adelaide Bank

71

14.0%

$11.24

$10.36

-7.8%

PME

Pro Medicus

70

12.6%

$131.17

$107.49

-18.1%

ALU

Altium

69

1.1%

$67.54

$62.65

-7.2%

CSR

CSR

66

0.8%

$8.96

$8.45

-5.7%

GMG

Goodman Group

66

7.2%

$35.77

$34.45

-3.7%

HUB

Hub24

66

9.5%

$44.90

$41.61

-7.3%

BRG

Breville Group

65

5.2%

$27.87

$26.47

-5.0%

CBA

Commonwealth Bank

65

4.5%

$125.31

$93.33

-25.5%

COL

Coles Group

65

4.9%

$16.99

$17.44

2.6%

Target price' is an aggregate of broker target prices from Refinitiv. Data as of the close on Friday, 14 June 2024

JB Hi-Fi shares are up 11% since 29 May to a two month high. There hasn't been a whole lot happening in the retail space. Some of the recent data points of interest include:

  • Australian consumer sentiment eased 0.3% to 82.2 in May amid renewed cost-of-living pressures and inflation concerns. The Westpac survey noted ‘finances compared to a year ago’ sub-index dropped 3.6% to just 63.2 in May, taking it back to the low end of the very weak range that has prevailed since late 2022. The ‘time to buy a major item’ sub-index also declined, falling 2.8% to 76.5, an extremely weak level for this component which has been capturing the impact of sharply rising prices on consumers’ purchasing power.

  • Australian retail sales rose 0.1% month-on-month in April, up from a 0.4% decline in the previous month. "Since the start of 2024, trend retail turnover has been flat as cautious consumers reduce their discretionary spending," said Ben Dorber, ABS head of retail statistics, adding that "Looking across the past two months, we see weak underlying spending in most parts of the retail industry."

  • Macquarie recently upgraded JB Hi-Fi and Harvey shares to Outperform on the back of "an anticipated upgrade cycle driven by the launch of AI-ready devices."


Most Oversold ASX 200 Stocks

Ticker

Company

RSI

1-Month %

Close Price

Target price

Upside

MIN

Mineral Resources

18

-18.8%

$62.37

$71.41

14.5%

PLS

Pilbara Minerals

20

-18.6%

$3.24

$3.76

16.0%

ALD

Ampol

22

-7.1%

$33.10

$38.63

16.7%

DRR

Deterra Royalties

22

-14.4%

$4.15

$5.01

20.7%

IGO

IGO

22

-20.7%

$6.04

$7.90

30.8%

ASX

ASX

24

-10.4%

$56.45

$59.36

5.2%

LTM

Arcadium Lithium

26

-25.2%

$5.44

na

na

KAR

Karoon Energy

27

-10.9%

$1.68

$2.38

42.1%

VEA

Viva Energy Group

27

-6.4%

$3.20

$4.02

25.6%

WOR

Worley

27

-4.6%

$14.14

$18.54

31.1%

Target price' is an aggregate of broker target prices from Refinitiv. Data as of the close on Friday, 14 June 2024

Mineral Resources and Pilbara Minerals have wound up as the most oversold stocks on the market. Chinese lithium prices are down around 17% since late April, returning to year-to-date lows of around 96,500 yuan a tonne after a short-lived bounce earlier this year. MinRes has not traded at an RSI this low since the October 2008.

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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