Top 3 Tech And Telecom Stocks That May Fall Off A Cliff

The most overbought stocks in the communication services sector presents an opportunity to go short on these overvalued companies.

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.

Here’s the latest list of major overbought players in this sector.

Meta Platforms, Inc. META

• JMP Securities reiterated Meta Platforms with a Market Outperform and maintained a $240 price target. The company’s stock has a 52-week high of $236.86 .
• RSI Value: 75.71
• META Price Action: Shares of Meta Platforms gained 3.6% to close at $204.93 on Thursday.

Scienjoy Holding Corporation SJ

• The company’s total net revenues rose by 21.2% to RMB1,419.4 million (US$199.5 million) for the nine months ended September 30, 2022, compared to RMB1,171.2 million in the year-ago period. The company’s stock has a 52-week high of $6.12.
• RSI Value: 73.04
• SJ Price Action: Shares of Scienjoy Holding rose 1.5% to close at $3.99 on Thursday.

Townsquare Media, Inc. TSQ

• Townsquare Media reported better-than-expected Q4 adjusted EPS and sales results. The company has a 52-week high of $13.16.
• RSI Value: 70.46
• TSQ Price Action: Shares of Townsquare Media gained 0.2% to close at $8.26 on Thursday.

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