Top 3 Defensive Stocks That Could Sink Your Portfolio In Q1

As of Jan. 30, 2024, three stocks in the consumer staples sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

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, according to Benzinga Pro.

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

Coffee Holding Co., Inc. JVA

• The company’s stock jumped around 11% over the past five days and has a 52-week high of $2.73 .
• RSI Value: 71.89
• JVA Price Action: Shares of Coffee Holding gained 3.5% to close at $1.18 on Monday.

Natural Health Trends Corp. NHTC

• On Nov. 1, Natural Health Trends posted an increase in quarterly EPS. “Adapting to the current environment in which Chinese consumers are reluctant to spend or invest, we managed to generate orders on pace with those of last year. Orders grew 3% at a constant exchange rate compared to the third quarter of 2022, while year-to-date 2023 orders increased 8% compared to prior year,” commented Chris Sharng, President of Natural Health Trends Corp. The company’s stock gained around 6% over the past month and has a 52-week high of $7.04.
• RSI Value: 74.42
• NHTC Price Action: Shares of Natural Health Trends rose 1% to close at $6.26 on Monday.

Colgate-Palmolive Company CL

• On Jan. 26, Colgate-Palmolive Company reported upbeat fourth-quarter financial results. “We leveraged our strong margin performance to invest behind building our brands, with a 19% increase in advertising spending in 2023, and we expect higher levels of brand investment in 2024,” said Noel Wallace, Chairman, President and Chief Executive Officer. The company’s stock gained more than 3% over the past five days and has a 52-week high of $84.00.
• RSI Value: 70.37
• CL Price Action: Shares of Colgate-Palmolive gained 1.4% to close at $83.96 on Monday.

Read More: Investor Optimism Improves Slightly Ahead Of Big Earnings, Fed's Policy Decision