As of July 24, 2024, two stocks in the consumer discretionary 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.

M/I Homes Inc (NYSE:MHO)

On July 24, Raymond James analyst Buck Horne initiated coverage on M/I Homes ( MHO ) with a Strong Buy rating and announced a price target of $200. The company's stock gained around 26% over the past month and has a 52-week high of $160.49.

RSI Value: 78.31                              

MHO Price Action: Shares of M/I Homes ( MHO ) gained 2.5% to close at $155.70 on Tuesday.

Hovnanian Enterprises, Inc. (NYSE:HOV)

On June 25, Hovnanian Enterprises ( HOV ) said Moody’s Ratings has upgraded Hovnanian’s corporate family rating to B2 from B3. The company's stock gained around 37% over the past month and has a 52-week high of $199.50.

RSI Value: 72.88

HOV Price Action: Shares of Hovnanian ( HOV ) rose 3.2% to close at $196.79 on Tuesday.

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