Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of March 4, 2024, four 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. 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.
Box, Inc. (NYSE: BOX)
- Box will replace Forrester Research in the S&P SmallCap 600 effective prior to the open of trading on Monday, March 18. The company’s stock gained around 4% over the past five days and has a 52-week high of $31.94 .
- RSI Value: 70.23
- BOX Price Action: Shares of Box gained 2.9% to close at $26.54 on Friday.
- On Feb. 27, QuickLogic reported better-than-expected fourth-quarter financial results. "I am very proud of the record profitability and the 31% annual revenue growth we posted for fiscal year 2023," said Brian Faith, CEO of QuickLogic. "With the expansion of our customer base and end markets that we anticipate this year, we expect our growth trend and profitability to continue in 2024 and beyond." The company’s stock gained around 26% over the past five days and has a 52-week high of $16.25.
- RSI Value: 70.84
- QUIK Price Action: Shares of QuickLogic gained 8.4% to close at $16.17 on Friday.
- On Feb. 26, Iveda Solutions was awarded a $3.2 million contract for confidential application by Taiwanese Government Agency. The company’s stock gained around 80% over the past month has a 52-week high of $1.90.
- RSI Value: 71.65
- IVDA Price Action: Shares of Iveda Solutions gained 1% to close at $1.01 on Friday.
- On Dec. 4, Cheetah Mobile announced acquisition of controlling stake in Beijing OrionStar. The company’s stock jumped around 24% over the past month and has a 52-week high is $2.98.
- RSI Value: 75.06
- CMCM Price Action: Shares of Cheetah Mobile fell 2.3% to close at $2.58 on Friday.
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