Lyft Stock Rallies Right Into 'Sell' Signal

Lyft's recent stock rally has put it in overbought territory, triggering a sell signal for some analysts.

After a strong run-up in recent weeks, Lyft shares have entered overbought territory, according to the relative strength index (RSI). The RSI is a technical analysis indicator that measures the magnitude of recent price changes to evaluate whether a security is overbought or oversold. A reading above 70 indicates that a security is overbought and may be due for a correction.

Lyft's RSI has climbed to 72, indicating that the stock is now in overbought territory.

This suggests that the stock may be due for a pullback in the near term. In addition to the RSI, other technical indicators are also flashing sell signals for Lyft. The moving average convergence divergence (MACD) is negative, and the stochastic oscillator is also in overbought territory.

Analysts are divided on whether Lyft's stock is a buy or a sell.

Some analysts believe that the stock is overvalued and is due for a correction. Others believe that the stock has further upside potential. Lyft is a leading ride-hailing company in the United States. The company has been growing rapidly in recent years, but it faces competition from Uber and other ride-hailing companies.

Lyft's stock has been volatile in recent months. The stock hit a 52-week high of $68.83 in January 2023. However, the stock has since pulled back and is currently trading at around $52 per share.