As of March 18, 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.
Veritone, Inc. (NASDAQ:VERI)
- On March 12, Veritone reported better-than-expected fourth-quarter revenue results and issued first-quarter guidance. “I am pleased with our performance in the fourth quarter, and extremely excited about our prospects for 2024. For the balance of the past year, we executed and progressed against the strategic initiatives we set in motion at the beginning of 2023, continuing through the first quarter of 2024, which have resulted in a series of transformative actions, including the execution of significant cost reductions and the realignment of our organization,” said Ryan Steelberg, Chairman and Chief Executive Officer of Veritone. The company’s stock gained around 69% over the past five days and has a 52-week high of $6.03 .
- RSI Value: 77.40
- VERI Price Action: Shares of Veritone gained 42.1% to close at $3.88 on Friday.
SoundHound AI, Inc. (NASDAQ:SOUN)
- On Feb. 29, SoundHound AI reported weaker-than-expected fourth-quarter financial results.. The company’s stock gained around 52% over the past five days and has a 52-week high of $10.25.
- RSI Value: 76.17
- SOUN Price Action: Shares of SoundHound AI gained 6.5% to close at $8.91 on Friday.
MicroStrategy Incorporated (NASDAQ:MSTR)
- On March 15, MicroStrategy announced pricing of its offering of convertible senior notes. The company’s stock gained around 153% over the past month has a 52-week high of $1,815.00.
- RSI Value: 72.76
- MSTR Price Action: Shares of MicroStrategy gained 6.3% to close at $1,782.36 on Friday.
Arlo Technologies, Inc. (NYSE:ARLO)
- On Feb. 29, Arlo Technologies reported better-than-expected fourth-quarter financial results. The company’s stock jumped around 40% over the past month and has a 52-week high is $12.50.
- RSI Value: 74.44
- ARLO Price Action: Shares of Arlo Technologies gained 1.3% to close at $12.26 on Friday.
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