As of April 7, 2025, three stocks in the health care sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here's the latest list of major overbought players in this sector.

Alumis Inc (NASDAQ:ALMS)

• On March 25, Alumis, Inc ( ALMS ) announced it entered into a collaboration and licensing agreement with Kaken Pharmaceuticals. Under the agreement, Alumis ( ALMS ) is licensing ESK-001, a drug aimed at treating immune dysregulation in various diseases, to Kaken for development, manufacturing and commercialization in Japan, limited to dermatologic applications.. The company's stock gained around 106% over the past month and has a 52-week high of $13.50.
• RSI Value: 77.4                                
• ALMS Price Action: Shares of Alumis ( ALMS ) gained 17.7% to close at $10.05 on Friday.

Chimerix Inc (NASDAQ:CMRX)

• On March 21, Chimerix ( CMRX ) reported quarterly losses of 25 cents per share which beat the analyst consensus estimate of a loss of 26 cents per share. The company reported quarterly sales of $57.00 thousand which missed the analyst consensus estimate of $75.00 thousand by 24.00 percent. The company's stock gained around 837% over the past six months and has a 52-week high of $8.54.
• RSI Value: 82.7
• CMRX Price Action: Shares of Chimerix ( CMRX ) closed at $8.53 on Friday.

Journey Medical Corp (NASDAQ:DERM)

• On April 1, Journey Medical Corporation ( DERM ) named Ramsey Alloush as Chief Operating Officer. Claude Maraoui, President and Chief Executive Officer of Journey Medical ( DERM ), said, “Ramsey’s promotion to COO reflects his exceptional leadership and the critical role he has played in our Company’s growth. His deep understanding of our business and the industry uniquely positions him to drive our strategic initiatives forward, focusing on operational excellence and maximizing shareholder value.” The company's stock gained around 40% over the past month and has a 52-week high of $7.29.
• RSI Value: 77.3
• DERM Price Action: Shares of Journey Medical ( DERM ) gained 9.1% to close at $7.19 on Friday.

Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.

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