Top 2 Health Care Stocks That Are Ticking Portfolio Bombs

As of Oct. 10, 2024, two stocks in the health care 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.

Travere Therapeutics Inc (NASDAQ:TVTX)

• On Sept. 26, Travere Therapeutics announced a voluntary pause of enrollment in its Phase 3 HARMONY study of Pegtibatinase. The company's stock gained around 27% over the past five days and has a 52-week high of $17.77.
• RSI Value: 86.14                              
• TVTX Price Action: Shares of Travere Therapeutics gained 15.7% to close at $17.59 on Wednesday.

Masimo Corp (NASDAQ:MASI)

• Michelle Brennan, a current member of Masimo's Board, has taken on the role of interim Chief Executive Officer, after Joe Kiani announced his resignation as CEO. In a regulatory filing, the company disclosed that, on September 19, Kiani filed a claim in California state court relating to his employment agreement, as amended, seeking declaratory relief that he had validly terminated his employment for "Good Reason." Masimo said its Board is evaluating Kiani's notice as well as his lawsuit against the company. The company's stock gained around 25% over the past month and has a 52-week high of $153.93.
• RSI Value: 75.44
• MASI Price Action: Shares of Masimo rose 2.5% to close at $143.49 on Wednesday.

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