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.
MicroCloud Hologram Inc. (NASDAQ:HOLO)
- The company’s stock jumped 203% over the past month. The company’s stock has a 52-week high of $35.00. .
- RSI Value: 80.89
- HOLO Price Action: Shares of MicroCloud Hologram fell 6.6% to close at $7.03 on Thursday.
Hollysys Automation Technologies Ltd. (NASDAQ:HOLI)
- A buyer consortium led by Recco Control Technology and Dazheng Group reaffirmed a $25 per share offer for Hollysys Automation Technologies. The company’s stock has a 52-week high of $20.43.
- RSI Value: 72.36
- HOLI Price Action: Shares of Hollysys Automation Technologies fell 0.4% to close at $18.59 on Thursday.
Fabrinet (NYSE:FN)
- Fabrinet reported better-than-expected fourth-quarter earnings. Seamus Grady, Chief Executive Officer of Fabrinet, said, “We exceeded our guidance for revenue and earnings per share in the fourth quarter. During the quarter we saw very strong growth in datacom revenue, driven by new AI products, which more than offset anticipated headwinds from inventory adjustments at some customers.” The company has a 52-week high of $163.88.
- RSI Value: 77.51
- FN Price Action: Shares of Fabrinet fell 2.5% to close at $158.91 on Thursday.
AppLovin Corporation (NASDAQ:APP)
- Applovin reported better-than-expected second-quarter EPS and sales results. The company’s 52-week high is $40.69.
- RSI Value: 72.65
- APP Price Action: Shares of AppLovin fell 2.2% to close at $39.31 on Thursday.
Black Knight, Inc. (NYSE:BKI)
- Black Knight announced dismissal of an injunction to block ICE’s acquisition of the company. The company has a 52-week high of $74.96.
- RSI Value: 72.46
- BKI Price Action: Shares of Black Knight rose 0.7% to settle at $74.84 on Thursday.
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