Top 2 Defensive Stocks That Should Keep You Up At Night

As of Feb. 13, 2024, two 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.

Farmmi, Inc. FAMI

• On Feb. 5, Farmmi said effective Jan. 30, 2024, Lingge Wu has resigned as the company’s CFO. The company’s stock gained around 19% over the past five days and has a 52-week high of $8.64 .
• RSI Value: 91.39
• FAMI Price Action: Shares of Farmmi jumped 9.7% to close at $1.25 on Monday.

Benson Hill, Inc. BHIL

• On Nov. 9, Benson Hill posted a narrower-than-expected quarterly loss. "Our team effectively managed a challenging third quarter, addressing some softness in soy crush margins and reduced demand for proprietary products because of market headwinds," said Deanie Elsner, Chief Executive Officer of Benson Hill. "The combination of the sale of certain non-core licensing technologies and higher-than-planned soy white flake ingredient sales expected in the fourth quarter positions us to end 2023 consistent with our prior guidance for gross profit. We expect these market challenges to persist, further supporting our decision to accelerate the shift to an asset-light business model designed to serve broadacre animal feed markets with our seed innovations enabled through the CropOS® platform." The company’s stock gained around 23% over the past five days and has a 52-week high of $3.15.
• RSI Value: 70.98
• BHIL Price Action: Shares of Benson Hill gained 4.6% to close at $0.2091 on Monday.

Read More: Fear & Greed Index Remains In 'Extreme Greed' Zone Ahead Of Inflation Data; Dow Hits Record High