SoftBank Shares Hit Overbought Level

Softbank shares are soaring to an all-time high!

A 34%, three-day surge in SoftBank Group Corp. has pushed its shares to the most overbought level in more than two decades on the back of Arm Holdings Plc.’s explosive rally.

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SoftBank Shares Hit Overbought Level As AI Craze Marches On, via Bloomberg#softbank #ai #chips #shares pic.twitter.com/Fy03qgNbB8

— The_Journalbiz (@the_journalbiz) February 14, 2024

Bloomberg chart, Softbank

The 14-day relative strength index for SoftBank hit 88 on Tuesday, exceeding the level of 70 that signals to some traders that an asset’s gains may have been excessive. The RSI is the highest since July 9, 2003, a date that was followed by a two-day plunge of more than 20% in the stock’s price.

SoftBank Group owns about 90% of Arm, which has almost doubled in value since the chip designer made the case last week for how it will benefit from an artificial intelligence boom.

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source: Bloomberg

Image: Softbank