Should I buy or wait if the Relative Strength Index (RSI) is overbought?

Asked 3 years ago

Hey all, EPD has buy ratings on RH, Webull, and other websites ($24.80 at the time of this post). It’s MA50 already crossed the MA200 and still heading up. But its RSI14 is sitting at 70. Should I buy or wait? Thank you

relative strength index (rsi)Overbought stocks Investment advice

Andia Rispah Igobwa

Thursday, October 07, 2021

Usually, an overbought RSI is 70 or above. If it's 30 or below, it is oversold.
But, the RSI excellent investment tool, should not be used on its own.
In most cases, an overbought stock can create low demand, lowering the price.
On the other hand, an oversold stock causes high demand, pushing the price up.

Andrew Moran

Saturday, October 09, 2021

Should you ever second guess the Relative Strength Index (RSI)?
This widely used metric gives you an advantage as a trader, whether you are a beginner or a pro. By exploiting it to your advantage, you can determine if it is time to buy, sell, or hold.
If the RSI is over 70, it suggests that shares are overbought and might be on the cusp of going through a trend reversal or substantial correction.
That said, if the stock is part of your short-term strategy, perhaps it is time to take the money and run. On the other hand, if these shares are part of your long-term portfolio, you should buy the dip and add to your overall positions.
The Relative Strength Index should always be at the top of your technical indicators.