As of Aug 1, 2024, two 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.

Zeta Global Holdings Corp ZETA

• On July 31, Zeta Global Holdings posted better-than-expected quarterly earnings. “Investments we made over the last seven years to put Artificial Intelligence and data at the core of our platform are now helping us accelerate the marketing cloud replacement cycle and our overall growth rate,” said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta. The company’s stock gained around 18% over the past month and has a 52-week high of $21.84 .
• RSI Value: 75.12                              
• ZETA Price Action: Shares of Zeta Global slipped to close at $21.42 on Wednesday.

Cognizant Technology Solutions Corp CTSH

• On July 31, Cognizant Tech posted upbeat quarterly earnings. The company’s stock gained around 12% over the past month and has a 52-week high of $80.09.
• RSI Value: 70.38
• CTSH Price Action: Shares of Cognizant Technology closed at $75.68 on Wednesday.

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