As of Aug 16, 2024, three 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.
Motorola Solutions Inc (NYSE:MSI)
- On Aug. 1, Motorola Solutions posted upbeat quarterly earnings. "Our second quarter was excellent, with strong growth in all three technologies and record Q2 sales and operating earnings," said Greg Brown, chairman and CEO, Motorola Solutions. The company's stock gained around 7% over the past month and has a 52-week high of $424.55.
- RSI Value: 71.75
- MSI Price Action: Shares of Motorola Solutions gained 0.8% to close at $421.94 on Thursday.
Fortinet Inc (NASDAQ:FTNT)
- On Aug. 6, Fortinet reported better-than-expected second-quarter financial results and issued FY24 guidance above estimates. "In the second quarter, we successfully balanced growth and profitability as our non-GAAP operating margin increased 820 basis points year-over-year to a company record of 35.1%, while billings and revenue were at the high end of their respective guidance ranges," said Ken Xie, founder, chairman and CEO of Fortinet. The company's stock gained around 23% over the past month and has a 52-week high of $73.91.
- RSI Value: 77.94
- FTNT Price Action: Shares of Fortinet gained 0.8% to close at $73.40 on Thursday.
Godaddy Inc (NYSE:GDDY)
- On Aug. 1, GoDaddy reported better-than-expected second-quarter sales results. "GoDaddy successfully delivered a great quarter," said GoDaddy CEO Aman Bhutani. The company's stock gained around 10% over the past month and has a 52-week high of $162.96.
- RSI Value: 73.50
- GDDY Price Action: Shares of Godaddy gained 1% to close at $162.45 on Thursday.
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