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.
Splunk Inc. (NASDAQ:SPLK)
- Cisco (NASDAQ:CSCO) announced it will acquire the company for roughly $28 billion. The company’s stock has a 52-week high of $145.81. .
- RSI Value: 83.23
- SPLK Price Action: Shares of Splunk rose 0.4% to close at $145.07 on Friday.
New Relic, Inc. (NYSE:NEWR)
- New Relic reported better-than-expected first-quarter financial results and announced it will be acquired by Francisco Partners and TPG for $6.5 billion. The company’s stock has a 52-week high of $86.00.
- RSI Value: 70.59
- NEWR Price Action: Shares of New Relic gained 0.1% to close at $85.41 on Friday.
Kaleyra, Inc. (NYSE:KLR)
- Kaleyra announced a strategic collaboration in its partnership portfolio with Talisma, a provider of customer experience solutions based in India. The company has a 52-week high of $7.22.
- RSI Value: 75.94
- KLR Price Action: Shares of Kaleyra rose 0.1% to close at $7.22 on Friday.
DatChat, Inc. (NASDAQ:DATS)
- DatChat recently announced a 1-for-10 reverse stock split. The company’s 52-week high is $2.30.
- RSI Value: 72.42
- DATS Price Action: Shares of DatChat jumped 11.9% to close at $2.92 on Friday.
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