Top 5 Health Care Stocks That May Collapse In Q2

The most overbought stocks in the health care sector presents an opportunity to go short on these overvalued companies.

The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.

Here’s the latest list of major overbought players in this sector.

TScan Therapeutics, Inc. TCRX

• TScan Therapeutics and Amgen announced collaboration to identify novel targets in Crohn's disease. The company’s stock has a 52-week high of $6.03 .
• RSI Value: 77.28
• TCRX Price Action: Shares of TScan Therapeutics rose 58.1% to close at $3.40 on Tuesday.

Zymeworks Inc. ZYME

• Zymeworks reported better-than-expected Q1 adjusted EPS and sales results. “In the first quarter, we continued executing against our corporate priorities throughout the company as outlined early in 2023 as we strive to make a meaningful difference for patients through innovation, while delivering impactful results for our stockholders,” said Kenneth Galbraith, Chair and CEO of Zymeworks. The company’s stock has a 52-week high of $10.80.
• RSI Value: 73.46
• ZYME Price Action: Shares of Zymeworks rose 12.8% to close at $9.88 on Tuesday.

Cassava Sciences, Inc. SAVA

• Cassava Sciences posted a wider quarterly loss. “In Q1 2023, we announced results of a one-year, open-label Phase 2 safety study of simufilam in over 200 patients with Alzheimer’s disease,” said Remi Barbier, President & CEO. The company has a 52-week high of $51.59.
• RSI Value: 75.53
• SAVA Price Action: Shares of Cassava Sciences jumped 15% to close at $26.58 on Tuesday.

Acumen Pharmaceuticals, Inc. ABOS

• Acumen Pharmaceuticals reported better-than-expected Q1 EPS results. “In the first quarter, we remained focused on executing the Phase I INTERCEPT-AD trial of ACU193, our novel therapeutic for the treatment of early Alzheimer’s disease. We are pleased to confirm our expectation that we will share the first clinical data in the field from a monoclonal antibody with high selectivity for toxic amyloid beta oligomers in the upcoming third quarter,” said Daniel O’Connell, President and Chief Executive Officer of Acumen. The company’s 52-week high is $10.97.
• RSI Value: 76.35
• ABOS Price Action: Shares of Acumen Pharmaceuticals jumped 18.1% to close at $5.73 on Tuesday.

Aileron Therapeutics, Inc. ALRN

• Aileron Therapeutics announced termination of its Phase 1b breast cancer chemoprotection trial and exploration of strategic alternatives. The company has a 52-week high of $9.60.
• RSI Value: 74.52
• ALRN Price Action: Shares of Aileron Therapeutics rose 19.4% to settle at $1.72 on Tuesday.

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