Top 2 Financial Stocks That May Collapse This Quarter

The most overbought stocks in the financial 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.

Citizens, Inc. CIA

• Citizens announced a partnership with Alliance Group to serve Spanish and Portuguese clients. "Citizens is excited to work with Alliance and Lee Duncan. Alliance is a market leader in their offering of life insurance and living benefits," said Company Vice Chairman and CEO, Gerald W. Shields. "Our partnership with them provides an opportunity for us to extend their fantastic policies to the Spanish and Portuguese population." The company’s stock has a 52-week high of $4.52 .
• RSI Value: 82.11
• CIA Price Action: Shares of Citizens gained 3.5% to close at $3.30 on Friday.

Universal Insurance Holdings, Inc. UVE

• Universal Insurance reported better-than-expected Q4 sales results. "It was a tough year, but I’m proud of what our team accomplished despite the circumstances," said Stephen J. Donaghy, Chief Executive Officer. "The Florida homeowners insurance market has faced significant challenges, but we remain committed to our home state and continue to write new and renewal business." The company’s stock has a 52-week high of $19.71.
• RSI Value: 78.83
• UVE Price Action: Shares of Universal Insurance fell 0.5% to close at $18.94 on Friday.

Read More: $22M Bet On This Basic Materials Stock? Check Out These 3 Stocks Insiders Are Buying