5 Tech Stocks That Are Flying - And May Collapse

Author: Lisa Levin | January 05, 2023 09:30am

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.

Oblong, Inc. (NASDAQ:OBLG)

• Oblong announced a 1-for-15 reverse stock split. The company’s stock has a 52-week high of $2.52 .
• RSI Value: 97.68
• OBLG Price Action: Shares of Oblong gained 26.5% to settle at $2.21 on Wednesday and jumped 51% in after-hours trading.

Kingsoft Cloud Holdings Limited (NASDAQ:KC)

• Kingsoft Cloud, during November, reported a third-quarter FY22 revenue decline of 18.4% year-on-year to $276.8 million, missing the consensus of $313.2 million. The company’s stock has a 52-week high of $15.08.
• RSI Value: 70.53
• KC Price Action: Shares of Kingsoft Cloud Holdings jumped 21.8% to close at $4.80 on Wednesday and lost 3.8% in after-hours trading.

Benefitfocus, Inc. (NASDAQ:BNFT)

• Benefitfocus, during November, posted a narrower-than-expected quarterly loss. The company has a 52-week high of $13.06.
• RSI Value: 81.67
• BNFT Price Action: Shares of Benefitfocus gained 0.1% to close at $10.47 on Wednesday and added 0.1% in after-hours trading.

CPI Card Group Inc. (NASDAQ:PMTS)

• CPI Card, during November, posted better-than-expected quarterly results. The company’s 52-week high is $40.83.
• RSI Value: 81.04
• PMTS Price Action: Shares of CPI Card rose 7.2% to close at $40.26 on Wednesday and slipped 0.1% in after-hours trading.

ACI Worldwide, Inc. (NASDAQ:ACIW)

• ACI Worldwide is said to weigh a potential sale, according to Bloomberg. The company has a 52-week high of $35.72.
• RSI Value: 79.94
• ACIW Price Action: Shares of ACI Worldwide gained 13.4% to settle at $26.11 on Wednesday and added 0.2% in after-hours trading.

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Posted In: ACIW BNFT KC OBLG PMTS