Is The Petco Stock Rally Over?

Shares of Petco Health and Wellness Company, Inc. WOOF made a big move higher Monday, closing up by almost 18%.

But now shares are overbought, which means the rally may be over, at least temporarily.

See Also: Petco Options Traders Bet An Epic Short Squeeze Is In The Cards

The bottom part of the following chart is the Relative Strength Momentum Indicator. When the blue line crosses above the red horizontal line, it means that the shares have reached an extreme above what would be their typical trading range. This shows that the stock is overbought.

These conditions will draw sellers into the market. They could keep the shares from moving higher. They may even knock it lower.

woof.png

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: TechnicalsTrading Ideas
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!