If you're the type of investor who pays attention to momentum indicators, two financial sector stocks are waving some pretty serious red flags right now. As of December 1, 2025, both companies are showing technical signals that suggest their recent rallies might be getting a bit overheated.
The Relative Strength Index (RSI) measures momentum by comparing how a stock performs on up days versus down days. It's essentially a temperature check for price action. When the RSI climbs above 70, traders typically consider an asset overbought—meaning it might be due for a breather or even a reversal in the short term.
Here's a closer look at two financial stocks currently flashing overbought warnings.
Forge Global Holdings Inc. (FRGE)
Forge Global has been on an absolute tear lately. The stock has climbed around 90% over the past month, reaching a 52-week high of $44.76. That kind of momentum doesn't go unnoticed, and on November 11, UBS analyst Alex Kramm made an interesting move: he downgraded the stock from Buy to Neutral while simultaneously raising his price target from $34 to $45. That's the analyst equivalent of saying "you're right, but maybe pump the brakes a little."
RSI Value: 87.7
FRGE Price Action: Shares of Forge Global edged up 0.1% to close at $44.36 on Friday.
Momentum Score: 97.50
Mercury General Corp (MCY)
Mercury General has also enjoyed a strong run, gaining approximately 22% over the past month. The insurance company delivered better-than-expected quarterly earnings on November 4, which helped propel shares near their 52-week high of $95.00. But with an RSI now sitting at 75.2, the stock has entered overbought territory.
RSI Value: 75.2
MCY Price Action: Shares of Mercury General slipped 0.3% to close at $93.12 on Friday.
For momentum traders, these elevated RSI readings serve as cautionary signals. It doesn't mean these stocks will definitely collapse—overbought conditions can persist longer than you'd expect—but it does suggest the easy money from the recent rallies might already be on the table. If you're holding either position, it might be time to review your exit strategy.
