Top 2 Tech Stocks That May Keep You Up At Night In Q1

As of Jan. 14, 2025, 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.

Palo Alto Networks Inc PANW

• On Jan. 8, Deutsche Bank downgraded the stock from Buy to Hold and lowered its price target from $207 to $190, while BTIG analyst Gray Powell downgraded the stock from Buy to Neutral. The company's stock surged around 316% over the past five years and has a 52-week high of $207.23.
• RSI Value: 79.1                                
• PANW Price Action: Shares of Palo Alto fell 3.2% to close at $167.82 on Monday.

MicroStrategy Inc MSTR

• MicroStrategy expanded its Bitcoin BTC/USD holdings by purchasing an additional 2,530 bitcoins for approximately $243 million, averaging $95,972 per coin, according to an SEC filing. The company's stock gained around 104% over the past six months and has a 52-week high of $542.99.
• RSI Value: 81.3
• MSTR Price Action: Shares of MicroStrategy gained 0.2% to close at $328.40 on Monday.

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