Top 3 Risk Off Stocks That May Crash In Q4

The most overbought stocks in the consumer staples 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.

Blue Apron Holdings, Inc. APRN

• Blue Apron announced an agreement to be acquired by Wonder Group for $13 per share. The company’s stock has a 52-week high of $56.16. .
• RSI Value: 78.37
• APRN Price Action: Shares of Blue Apron rose 134.5% to close at $12.88 on Friday.

Thorne HealthTech, Inc. THRN

• Thorne HealthTech recently entered into a definitive agreement to be acquired by L Catterton, a global consumer-focused investment firm, at $10.20 per share in cash.. The company’s stock has a 52-week high of $10.20.
• RSI Value: 74.02
• THRN Price Action: Shares of Thorne HealthTech gained 0.2% to close at $10.19 on Friday.

Hostess Brands, Inc. TWNK

• The J. M. Smucker announced plans to acquire Hostess Brands for $34.25 per share, implying a total enterprise value of $5.6 billion. The company has a 52-week high of $33.74.
• RSI Value: 79.68
• TWNK Price Action: Shares of Hostess Brands fell 0.3% to close at $33.31 on Friday.

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