RE:RE:Globe and Mail names ALA as second most overbought stock I like to use RSI using weekly instead of daily data. It looks at longer trends and smooth it. On this basis, RSI is still around 52.23 and have more room before it reaches 70 or 80. Its easy to say its overbought on a daily basis when it was way oversold prior. It is worth noting that technical indicators tend to fail almost half the time. While technical analysis can be useful, the true forces that determine a company's value are fundamentals - the ability and amount of future cash flows that will be generated by the firm. On that basis, ALA is trading around 5 times 2019E price to cash flow per share. If they can work things out, this multiple could ramp upwards towards peer valuations mostly ranging in the 8-10x.