As of July 18, 2024, three 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.

IBM Common Stock IBM

• International Business Machines is expected to report second-quarter results release after the closing bell on July 24. The company’s stock gained around 10% over the past month and has a 52-week high of $199.18.
• RSI Value: 71.66                              
• IBM Price Action: Shares of IBM gained 0.9% to close at $187.45 on Wednesday.

HP Inc HPQ

• On June 26, HP named Karen Parkhill as CFO. The company’s stock gained around 5% over the past five days and has a 52-week high of $39.52.
• RSI Value: 70.30
• HPQ Price Action: Shares of HP gained 0.3% to close at $38.11 on Wednesday.

Juniper Networks, Inc. JNPR

• Juniper Networks will release preliminary financial results for the quarter ended June 30, 2024 on Thursday, July 25, after the closing bell. The company’s stock gained around 5% over the past month and has a 52-week high of $38.04.
• RSI Value: 75.31
• JNPR Price Action: Shares of Juniper fell 0.2% to close at $37.20 on Wednesday.

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