Egis Retreates on Signal Stock Overbought After Three-Day Rally

Egis Gyogyszergyar Nyrt. (EGIS), a Hungarian drugmaker, fell for the first time in four days as a technical indicator showed the stock was overbought.

The shares dropped 0.9 percent to 15,665 forint by 11:24 a.m. in Budapest. The 4.3 percent advance in the past three days pushed the stock’s 14-day relative strength index to 72, above the 70 level which indicates to some analysts that a security is oversold. The RSI last stood at 68.

“Egis is soon becoming overbought,” Erste Group Bank AG wrote in a research report sent by e-mail today.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.