The most overbought stocks in the information technology sector presents an opportunity to go short on these overvalued companies.
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.
Here’s the latest list of major overbought players in this sector.
Jabil Inc. (NYSE:JBL)
- Jabil reported fourth-quarter revenue of $8.46 billion, missing the consensus estimate of $8.54 billion. “The team delivered yet another solid year and I’m pleased with the progress we’ve made relative to our financial objectives. As we move into the new fiscal year, I feel strongly that we have the right team, capabilities, and diversified portfolio to support good momentum into FY24 and beyond,” stated CEO Kenny Wilson. The company’s stock has a 52-week high of $141.38. .
- RSI Value: 73.18
- JBL Price Action: Shares of Jabil gained 0.2% to close at $137.42 on Tuesday.
Palo Alto Networks, Inc. (NASDAQ:PANW)
- Keybanc recently maintained its Overweight rating of Palo Alto Networks and raised its price target from $300.00 to $315.00. The company’s stock has a 52-week high of $265.90.
- RSI Value: 70.12
- PANW Price Action: Shares of Palo Alto gained 0.1% to close at $261.74 on Tuesday.
Splunk Inc. (NASDAQ:SPLK)
- Cisco (NASDAQ:CSCO) announced it will acquire Splunk for roughly $28 billion. The company has a 52-week high of $148.50.
- RSI Value: 80.65
- SPLK Price Action: Shares of Splunk fell 0.3% to close at $147.81 on Tuesday.
MMTec, Inc. (NASDAQ:MTC)
- MMTEC is scheduled to hold its 2023 annual meeting of shareholders on Nov. 10, 2023. The company’s 52-week high is $3.09.
- RSI Value: 81.53
- MTC Price Action: Shares of MMTec gained 7.2% to close at $1.04 on Tuesday.
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