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Two Consumer Staples Stocks Flashing Overbought Signals

MarketDash Editorial Team
2 hours ago
Dollar General and Coffee Holding are showing RSI readings above 70, suggesting these momentum plays might be due for a pullback after recent rallies.

When stocks get too hot too fast, momentum traders start looking for exits. As of December 29, 2025, two consumer staples names are flashing warning signs that suggest their recent rallies might be running out of steam.

The Relative Strength Index measures how aggressively a stock has been moving by comparing the magnitude of recent gains to recent losses. Think of it as a thermometer for price momentum. When the RSI climbs above 70, technical analysts typically consider the stock overbought, meaning it may have run up too far too fast and could be vulnerable to a pullback. Here's what's looking stretched right now.

Dollar General Corp

Dollar General Corp (DG) has been on quite a run lately. The discount retailer's shares have climbed roughly 26% over the past month, pushing the stock near its 52-week high of $138.46. That kind of momentum doesn't go unnoticed by technical traders.

  • On December 23, Evercore ISI Group analyst Michael Montani maintained an In-Line rating on Dollar General while raising his price target from $130 to $135, acknowledging the stock's recent strength.
  • RSI Value: 75.3
  • DG Price Action: Shares rose 1.8% to close at $137.84 on Friday.
  • The stock scores 89.95 on momentum metrics, though its value rating sits at 51.89, suggesting the price appreciation has outpaced fundamental improvements.

Coffee Holding Co., Inc.

Coffee Holding Co., Inc. (JVA) is showing even more extreme overbought readings after a sharp five-day rally of about 14%. The stock has surged to approach its 52-week high of $9.93.

  • Back in October, Coffee Holding announced plans to shutter its Comfort Foods manufacturing facility in North Andover, Massachusetts. The restructuring news appears to have sparked renewed investor interest in recent sessions.
  • RSI Value: 78.3
  • JVA Price Action: Shares jumped 12% to close at $4.12 on Friday.

For momentum-focused traders, these elevated RSI readings suggest caution might be warranted. While overbought stocks can certainly continue climbing, the odds of a near-term pullback increase significantly once momentum indicators push into extreme territory. Both of these consumer staples names have enjoyed impressive runs, but the technical picture suggests they may need to cool off before the next leg higher.

Back to Stock Market News

Two Consumer Staples Stocks Flashing Overbought Signals

MarketDash Editorial Team
2 hours ago
Dollar General and Coffee Holding are showing RSI readings above 70, suggesting these momentum plays might be due for a pullback after recent rallies.

When stocks get too hot too fast, momentum traders start looking for exits. As of December 29, 2025, two consumer staples names are flashing warning signs that suggest their recent rallies might be running out of steam.

The Relative Strength Index measures how aggressively a stock has been moving by comparing the magnitude of recent gains to recent losses. Think of it as a thermometer for price momentum. When the RSI climbs above 70, technical analysts typically consider the stock overbought, meaning it may have run up too far too fast and could be vulnerable to a pullback. Here's what's looking stretched right now.

Dollar General Corp

Dollar General Corp (DG) has been on quite a run lately. The discount retailer's shares have climbed roughly 26% over the past month, pushing the stock near its 52-week high of $138.46. That kind of momentum doesn't go unnoticed by technical traders.

  • On December 23, Evercore ISI Group analyst Michael Montani maintained an In-Line rating on Dollar General while raising his price target from $130 to $135, acknowledging the stock's recent strength.
  • RSI Value: 75.3
  • DG Price Action: Shares rose 1.8% to close at $137.84 on Friday.
  • The stock scores 89.95 on momentum metrics, though its value rating sits at 51.89, suggesting the price appreciation has outpaced fundamental improvements.

Coffee Holding Co., Inc.

Coffee Holding Co., Inc. (JVA) is showing even more extreme overbought readings after a sharp five-day rally of about 14%. The stock has surged to approach its 52-week high of $9.93.

  • Back in October, Coffee Holding announced plans to shutter its Comfort Foods manufacturing facility in North Andover, Massachusetts. The restructuring news appears to have sparked renewed investor interest in recent sessions.
  • RSI Value: 78.3
  • JVA Price Action: Shares jumped 12% to close at $4.12 on Friday.

For momentum-focused traders, these elevated RSI readings suggest caution might be warranted. While overbought stocks can certainly continue climbing, the odds of a near-term pullback increase significantly once momentum indicators push into extreme territory. Both of these consumer staples names have enjoyed impressive runs, but the technical picture suggests they may need to cool off before the next leg higher.