Top 5 Information Technology Stocks That May Collapse

Author: Lisa Levin | December 28, 2022 08:34am

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.

Coupa Software Incorporated (NASDAQ:COUP)

• Canaccord Genuity recently downgraded Coupa Software from Buy to Hold and lowered the price target from $100 to $81. The company’s stock has a 52-week high of $166.21 .
• RSI Value: 72.55
• COUP Price Action: Shares of Coupa Software gained 0.2% to settle at $78.58 on Tuesday and lost 0.1% in after-hours trading.

Agilysys, Inc. (NASDAQ:AGYS)

• BTIG analyst recently upgraded Agilysys from Neutral to Buy. The company’s stock has a 52-week high of $82.17.
• RSI Value: 73.37
• AGYS Price Action: Shares of Agilysys dropped 1.2% to close at $79.09 on Tuesday.

Paysafe Limited (NYSE:PSFE)

• Paysafe recently announced a 1-for-12 reverse stock split. The company has a 52-week high of $52.44.
• RSI Value: 75.54
• PSFE Price Action: Shares of Paysafe fell 3.4% to close at $12.38 on Tuesday.

CPI Card Group Inc. (NASDAQ:PMTS)

• CPI Card, last month, reported better-than-expected results for its third quarter. The company’s 52-week high is $37.47.
• RSI Value: 74.51
• PMTS Price Action: Shares of CPI Card Group closed at $35.11 on Tuesday and added 2% in after-hours trading.

Luna Innovations Incorporated (NASDAQ:LUNA)

• Luna recently won a major contract for Levee Monitoring. The company has a 52-week high of $9.69.
• RSI Value: 71.02
• LUNA Price Action: Shares of Luna Innovations dropped 0.3% to settle at $8.85 on Tuesday.

Read More: Investor Fear Increases After Nasdaq Drops Over 1%

Posted In: AGYS COUP LUNA PMTS PSFE