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Two Financial Stocks Showing Overbought Warning Signs

MarketDash Editorial Team
5 hours ago
Citigroup and Capital One Financial are flashing momentum warning signals as their RSI indicators climb well above the typical overbought threshold of 70, suggesting potential near-term pullbacks despite recent analyst upgrades.

Two financial sector stocks are lighting up momentum indicators in a way that might make short-term traders nervous. As of December 15, 2025, these companies are showing warning signs for investors who pay close attention to technical momentum.

The Relative Strength Index (RSI) measures momentum by comparing a stock's strength on up days versus down days. Think of it as a fever thermometer for stock prices. When the RSI climbs above 70, the asset is generally considered overbought, which often means the price has run up too far, too fast. And that can signal a potential pullback ahead.

Citigroup Rides High on Upgrade

Citigroup Inc. (C) is flashing an RSI of 76.8, well into overbought territory. The stock has climbed roughly 14% over the past month, approaching its 52-week high of $113.43.

On December 12, JP Morgan analyst Vivek Juneja upgraded Citigroup from Neutral to Overweight, raising the price target from $107 to $124. That kind of analyst enthusiasm tends to fuel momentum, but it also raises the question of whether the stock has gotten ahead of itself.

Shares of Citi ticked up 0.1% to close at $111.80 on Friday. The stock carries a momentum score of 87.55, reflecting its recent strength.

Capital One Shows Even Stronger Momentum

Capital One Financial Corp (COF) is showing an even more extreme reading with an RSI of 80.4. The stock has surged approximately 18% over the past month and recently touched a 52-week high of $243.31.

The rally got fresh fuel on December 8 when Wolfe Research analyst Darrin Peller initiated coverage with an Outperform rating and a $270 price target. That's a nice vote of confidence, but the momentum meter is now deep into the red zone.

Shares of Capital One Financial slipped 0.6% to close at $237.87 on Friday, perhaps showing early signs of the momentum cooling off.

The question for traders now is whether these stocks can sustain their momentum or if a correction is around the corner. Overbought doesn't mean a stock will definitely fall, but history suggests that what goes up quickly often needs to catch its breath.

Back to News

Two Financial Stocks Showing Overbought Warning Signs

MarketDash Editorial Team
5 hours ago
Citigroup and Capital One Financial are flashing momentum warning signals as their RSI indicators climb well above the typical overbought threshold of 70, suggesting potential near-term pullbacks despite recent analyst upgrades.

Two financial sector stocks are lighting up momentum indicators in a way that might make short-term traders nervous. As of December 15, 2025, these companies are showing warning signs for investors who pay close attention to technical momentum.

The Relative Strength Index (RSI) measures momentum by comparing a stock's strength on up days versus down days. Think of it as a fever thermometer for stock prices. When the RSI climbs above 70, the asset is generally considered overbought, which often means the price has run up too far, too fast. And that can signal a potential pullback ahead.

Citigroup Rides High on Upgrade

Citigroup Inc. (C) is flashing an RSI of 76.8, well into overbought territory. The stock has climbed roughly 14% over the past month, approaching its 52-week high of $113.43.

On December 12, JP Morgan analyst Vivek Juneja upgraded Citigroup from Neutral to Overweight, raising the price target from $107 to $124. That kind of analyst enthusiasm tends to fuel momentum, but it also raises the question of whether the stock has gotten ahead of itself.

Shares of Citi ticked up 0.1% to close at $111.80 on Friday. The stock carries a momentum score of 87.55, reflecting its recent strength.

Capital One Shows Even Stronger Momentum

Capital One Financial Corp (COF) is showing an even more extreme reading with an RSI of 80.4. The stock has surged approximately 18% over the past month and recently touched a 52-week high of $243.31.

The rally got fresh fuel on December 8 when Wolfe Research analyst Darrin Peller initiated coverage with an Outperform rating and a $270 price target. That's a nice vote of confidence, but the momentum meter is now deep into the red zone.

Shares of Capital One Financial slipped 0.6% to close at $237.87 on Friday, perhaps showing early signs of the momentum cooling off.

The question for traders now is whether these stocks can sustain their momentum or if a correction is around the corner. Overbought doesn't mean a stock will definitely fall, but history suggests that what goes up quickly often needs to catch its breath.