Concord Medical Approaches Overbought Territory After Big Rallyby
Diagnostic center manager's stock soars on special dividend
RSI just shy of threshold that has knocked shares down before
Concord Medical Services Holdings Ltd.’s shares, in the midst of their second strongest week-long rally since going public in 2009, is heading into territory that has previously driven the stock down.
The 14-day relative strength index on the Beijing-based diagnostic and treatment center manager’s U.S.-traded shares hit 67, just shy of being considered overbought by that measure. The stock has repeatedly fallen after its RSI topped 70.
The shares, up 25 percent in the past five trading days to $5.58 after announcing a special dividend on Friday, may hit technical resistance at their 200-day moving average of $5.88 or at $5.78, the 38.2 percent Fibonacci retracement level of June’s high.