These momentum stocks have lost their mojo, according to technicals
The sell-off in stocks is now into its fourth week, and plenty of momentum stocks have broken down amid the carnage. On Tuesday, the S & P 500 , Dow Jones Industrial Average and Nasdaq Composite pulled back yet again after President Donald Trump announced he is imposing additional steel and aluminum tariffs on Canada, effective Wednesday. The declines came one day after all three major averages were routed amid mounting concern on Wall Street that the U.S. faces an imminent recession. Against this volatile backdrop, CNBC Pro screened for S & P 500 companies whose shares have quickly been losing steam. Specifically, we looked for stocks with a relative strength index, or RSI, reading below 30 on Monday and whose RSI has scored below 40 for the past 10 trading sessions. A stock with an RSI below 30 indicates shares are extremely weak and maybe oversold. Below are the stocks that came up in our search: While shares of Tesla , which has an RSI of around 22, advanced more than 5% midday Tuesday, on track to snap a three-day losing streak, the stock has had a rough time in recent weeks. In fact, Tesla has fallen in 10 out of the past 11 weeks. Elon Musk’s electrical vehicle maker has plunged more than 46% over the past three months. This week, Musk admitted he is running his myriad businesses “with great difficulty” due to his role in the Trump administration. On Tuesday, Trump wrote in a Truth Social post that “radical left lunatics” are “illegally and collusively” boycotting Tesla , and promised to buy one himself to show support for Musk. Notably, the Street is pretty split on Tesla. According to LSEG, 26 of the 54 analysts covering the stock have the equivalent of a buy rating, while 16 rate it hold. The remaining 12 carry the equivalent of a sell rating. Amazon has an RSI around 26, and its shares have slumped more than 16% over the past month. Amazon fell more than 2% Monday as “Magnificent Seven” stocks helped lead the market lower. The Street is still overwhelmingly bullish on the dominant e-commerce platform. Of the 72 analysts covering Amazon, 68 have a strong buy or buy rating, while the remaining four rate it a hold. Their consensus 12-month price target of nearly $265 implies more than 36% upside ahead. ServiceNow and Constellation Energy also showed up on the screen, with an RSI below 30. Shares of ServiceNow have fallen about 30% over the past three months, while Constellation Energy has retreated almost 35% over the past month alone.
