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As of Oct. 3, 2024, two stocks in the communication services 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.
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Here’s the latest list of major overbought players in this sector.
Madison Square Garden Sports Corp (NYSE:MSGS)
On Aug. 13, Madison Square Garden reported better-than-expected second-quarter financial results. Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, “Our Company delivered record financial results in fiscal 2024, driven by robust demand for the Knicks and the Rangers, as both teams had successful regular seasons which led to playoff runs. Looking ahead, we remain confident in the strength of our professional sports franchises and believe we are well positioned to generate long-term shareholder value.” The company’s stock gained around 2% over the past five days and has a 52-week high of $213.26.
RSI Value: 72.41
MSGS Price Action: Shares of Madison Square Garden Sports gained 1.6% to close at $212.16 on Wednesday.
Sohu.com Ltd – ADR (NASDAQ:SOHU)
On Aug. 5, Sohu.com reported revenue growth of 13% year-over-year to $172 million for the fiscal second quarter of 2024, up 24% Q/Q. Sohu expects third-quarter brand advertising revenue of $17 million—$19 million, a decrease of 14%–23% year over year. The company’s stock gained around 8% over the past month and has a 52-week high of $16.65.
RSI Value: 73.12
SOHU Price Action: Shares of Sohu gained 6.1% to close at $16.44 on Wednesday.
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This article Top 2 Tech And Telecom Stocks That Are Ticking Portfolio Bombs originally appeared on Benzinga.com
