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Two Real Estate Stocks Flashing Overbought Signals to Start Q1

MarketDash Editorial Team
3 days ago
Compass Inc. and Global Net Lease are showing elevated RSI readings above 70, suggesting these real estate stocks may be overextended after recent rallies. Here's what momentum traders need to know about these overbought names.

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If you're a momentum trader who keeps close tabs on technical indicators, two real estate stocks might be worth watching as we kick off the first quarter. As of January 8, 2026, both Compass Inc. (COMP) and Global Net Lease Inc. (GNL) are showing overbought signals that could matter for short-term trading decisions.

Let's talk about the Relative Strength Index, or RSI. This momentum indicator does something pretty straightforward: it compares how strong a stock is on up days versus down days. The magic number here is 70. When a stock's RSI climbs above that threshold, it's typically considered overbought, meaning it might be due for a breather after a strong run. Think of it as the market's way of saying "this has been fun, but maybe we've gotten ahead of ourselves."

Compass Inc. Running Hot

Compass Inc. (COMP) is currently sporting an RSI of 80.2, which is well into overbought territory. The real estate brokerage announced on January 7 that it's offering $750 million in convertible senior notes due in 2031. The market seems to like what it's seeing: shares have jumped approximately 12% over the past five days.

On Wednesday, Compass shares climbed 9.3% to close at $11.84. That puts the stock pretty close to its 52-week high of $12.58. The momentum score? A hefty 95.44, which tells you just how much upward energy this stock has been packing lately.

Global Net Lease Also Stretched

Meanwhile, Global Net Lease Inc. (GNL) is showing an RSI of 73.3 after completing a significant transaction. Back on December 23, the company announced it successfully closed the sale of the McLaren Campus for £250 million at a 7.4% cash cap rate.

"We're pleased to complete the sale of the McLaren Campus, which is another important step in the continued execution of our strategic initiatives, including reducing our exposure to the automotive industry," said Michael Weil, CEO of GNL.

The stock has gained around 10% over the past month, and on Wednesday, shares rose 1.1% to close at $8.89. With a 52-week high of $8.92, Global Net Lease is trading right near its recent peak.

For momentum traders, these elevated RSI readings serve as a yellow light rather than a red one. Overbought conditions don't automatically mean a stock will fall, but they do suggest that the recent rally might need to pause and consolidate before the next move. Whether these stocks keep climbing or take a breather is anyone's guess, but the technical indicators are certainly worth noting as Q1 gets underway.

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Two Real Estate Stocks Flashing Overbought Signals to Start Q1

MarketDash Editorial Team
3 days ago
Compass Inc. and Global Net Lease are showing elevated RSI readings above 70, suggesting these real estate stocks may be overextended after recent rallies. Here's what momentum traders need to know about these overbought names.

Get Abercrombie & Fitch Co. - Class A Alerts

Weekly insights + SMS alerts

If you're a momentum trader who keeps close tabs on technical indicators, two real estate stocks might be worth watching as we kick off the first quarter. As of January 8, 2026, both Compass Inc. (COMP) and Global Net Lease Inc. (GNL) are showing overbought signals that could matter for short-term trading decisions.

Let's talk about the Relative Strength Index, or RSI. This momentum indicator does something pretty straightforward: it compares how strong a stock is on up days versus down days. The magic number here is 70. When a stock's RSI climbs above that threshold, it's typically considered overbought, meaning it might be due for a breather after a strong run. Think of it as the market's way of saying "this has been fun, but maybe we've gotten ahead of ourselves."

Compass Inc. Running Hot

Compass Inc. (COMP) is currently sporting an RSI of 80.2, which is well into overbought territory. The real estate brokerage announced on January 7 that it's offering $750 million in convertible senior notes due in 2031. The market seems to like what it's seeing: shares have jumped approximately 12% over the past five days.

On Wednesday, Compass shares climbed 9.3% to close at $11.84. That puts the stock pretty close to its 52-week high of $12.58. The momentum score? A hefty 95.44, which tells you just how much upward energy this stock has been packing lately.

Global Net Lease Also Stretched

Meanwhile, Global Net Lease Inc. (GNL) is showing an RSI of 73.3 after completing a significant transaction. Back on December 23, the company announced it successfully closed the sale of the McLaren Campus for £250 million at a 7.4% cash cap rate.

"We're pleased to complete the sale of the McLaren Campus, which is another important step in the continued execution of our strategic initiatives, including reducing our exposure to the automotive industry," said Michael Weil, CEO of GNL.

The stock has gained around 10% over the past month, and on Wednesday, shares rose 1.1% to close at $8.89. With a 52-week high of $8.92, Global Net Lease is trading right near its recent peak.

For momentum traders, these elevated RSI readings serve as a yellow light rather than a red one. Overbought conditions don't automatically mean a stock will fall, but they do suggest that the recent rally might need to pause and consolidate before the next move. Whether these stocks keep climbing or take a breather is anyone's guess, but the technical indicators are certainly worth noting as Q1 gets underway.