A wide range of stocks in retail, financial services and artificial intelligence could soon fall, according to one common indicator used in technical analysis. Stocks rose on Friday, marking a fourth consecutive day of gains and nearing record highs as the end of the year approaches. Last week, the S&P 500 rose 0.3%, the Dow Jones Industrial Average rose 0.5%, and the Nasdaq Composite Index rose 0.9%. The rally, ahead of the Federal Reserve’s expected quarter-point rate cut at its final meeting of the year next week, has pushed some blue-chip stocks to the point where they appear overbought. To find stocks that have moved the furthest, fastest, and may now be overshooting, we used the CNBC Pro Stock Screener to identify companies with a 14-day Relative Strength Index (RSI) value above 70 (a threshold that signals future weakness) and a weekly increase of 5% or more. Stocks such as Dollar General, mobile technology provider Upravin, and Wells Fargo were among the most overbought stocks. Dollar General topped the list of overbought stocks with an RSI value of 85. The company’s stock rose nearly 17% by midday last Friday after the company raised its 2026 same-store sales, revenue and revenue forecasts. AppLovin stock also appears to be overbought with an RSI value of 71.4. Its $235 billion market capitalization rose nearly 15% in the five days to midday Friday and more than doubled in 2025. The rise comes after the mobile ad technology company last week predicted multi-year growth in the gaming ad market. AppLovin said enhancements to its mobile advertising and app monetization platforms will further accelerate profits. Oversold After the market’s recent rally, there are fewer stocks flagged as oversold, but there are still a few, CNBC Pro’s stock screener shows. Oversold stocks have an RSI below 30 and were down more than 5% last week as of Friday noon. WR Berkeley has emerged as the top stock with potential for near-term upside. The non-life insurance company’s stock price fell 9% this week, with an RSI of 20.2. Alexandria Real Estate Equities, a real estate investment trust with an RSI of 25.3, was not well-received last week as its stock price fell about 13% after cutting its quarterly dividend by 46%. The Pasadena, Calif., property owner also lowered its 2026 operating cash per share outlook to a range of $6.25 to $6.55, below analysts’ consensus estimate of $6.88, according to FactSet.
