Top 4 Tech Stocks That May Crash This Month

Author: Avi Kapoor | February 20, 2024 09:14am

As of Feb. 20, 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.

SoundHound AI, Inc. (NASDAQ:SOUN)

• On Feb. 14, Nvidia reported a 1.73 million share stake in SoundHound AI. The company’s stock gained around 68% over the past month and has a 52-week high of $5.11 .
• RSI Value: 83.13
• SOUN Price Action: Shares of SoundHound AI gained 1.4% to close at $3.8108 on Friday.

AppLovin Corporation (NASDAQ:APP)

• On Feb. 14, AppLovin reported better-than-expected fourth-quarter financial results. The company’s stock gained around 28% over the past five days and has a 52-week high of $60.65
• RSI Value: 77.91
• APP Price Action: Shares of AppLovin gained 2.3% to close at $59.87 on Friday.

Applied Materials, Inc. (NASDAQ:AMAT)

• On Feb. 15, Applied Materials reported better-than-expected first-quarter financial results. “Applied Materials delivered strong results in the first quarter of fiscal 2024 and has outperformed our markets for the fifth consecutive year,” said Gary Dickerson, CEO of Applied Materials. The company’s stock gained around 19% over the past month and has a 52-week high of $206.77.
• RSI Value: 76.00
• AMAT Price Action: Shares of Applied Materials gained 6.4% to close at $199.57 on Friday.

Pixelworks, Inc. (NASDAQ:PXLW)

• On Feb. 8, Pixelworks posted a wider-than-expected fourth quarter loss. "Our fourth quarter results marked a strong finish to the year, which was highlighted by the continued momentum and significant growth of our mobile business," stated Todd DeBonis, President and CEO of Pixelworks. The company’s stock jumped around 98% over the past month and has a 52-week high is $2.92.
• RSI Value: 78.54
• PXLW Price Action: Shares of Pixelworks gained 4.2% to close at $2.71 on Friday.

 

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Posted In: AMAT APP PXLW SOUN