February 6, 2024 8:26 AM | 2 min read
As of Feb. 6, 2024, five stocks in the information technology 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. 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.
Potential Red Flags:
- Everbridge, Inc. (EVBG)
- Acquisition announcement by Thoma Bravo
- RSI Value: 79.24
- Price Action: Stock gained 18.4%
- Super Micro Computer, Inc. (SMCI)
- Better-than-expected financial results
- RSI Value: 91.56
- Price Action: Stock jumped 14.4%
- Coherent Corp. (COHR)
- Better-than-expected quarterly results
- RSI Value: 76.24
- Price Action: Stock gained 0.6%
- NVIDIA Corporation (NVDA)
- Price target raised and added to Conviction List by Goldman Sachs
- RSI Value: 85.97
- Price Action: Stock gained 4.8%
- Taiwan Semiconductor Manufacturing Company Limited (TSM)
- Better-than-expected fourth-quarter revenue
- RSI Value: 72.05
- Price Action: Stock gained 2.6%
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