Top 5 Tech Stocks That May Crash This Month

The most overbought stocks in the information technology 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.

PowerSchool Holdings, Inc. PWSC

• PowerSchool inked definitive deal to acquire SchoolMessenger from parent company, West Technology Group, for $300 million in cash. The company’s stock has a 52-week high of $26.05. .
• RSI Value: 71.82
• PWSC Price Action: Shares of PowerSchool Holdings rose 1.5% to close at $23.75 on Tuesday.

Badger Meter, Inc. BMI

• Badger Meter reported better-than-expected second-quarter financial results and issued 2H guidance. "As our record second quarter results demonstrate, Badger Meter continues to benefit from the adoption of our differentiated smart water solutions, favorable market conditions and sound execution. In addition to our record sales performance, we delivered strong operating profit margin expansion, record EPS and solid cash flow," said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer. The company’s stock has a 52-week high of $167.00.
• RSI Value: 70.98
• BMI Price Action: Shares of Badger Meter rose 0.8% to close at $164.81 on Tuesday.

The Hackett Group, Inc. HCKT

• The Hackett Group posted upbeat first-quarter earnings. "We reported solid quarterly results in spite of increased economic headwinds, while we continued to increase our investment in program development and sales resources in our recurring high margin IPaaS, executive advisory and market intelligence offerings," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. The company has a 52-week high of $23.59.
• RSI Value: 70.16
• HCKT Price Action: Shares of Hackett Group rose 0.8% to close at $23.40 on Tuesday.

Kimball Electronics, Inc. KE

• Kimball Electronics posted downbeat third-quarter earnings. Richard D. Phillips, Chief Executive Officer, stated, "I am very pleased with my first quarter as CEO of Kimball Electronics, and the opportunity to share strong results for Q3. The Company has been on a path of unprecedented growth, and for the fifth consecutive quarter, revenue reached an all-time record high." The company’s 52-week high is $30.26.
• RSI Value: 70.70
• KE Price Action: Shares of Kimball Electronics gained 0.7% to close at $29.94 on Tuesday.

Nano Dimension Ltd. NNDM

• Nano Dimension recently boosted its proposed price to $25.00 per share in cash in its special tender offer price for Stratasys shares. The company has a 52-week high of $3.74.
• RSI Value: 72.91
• NNDM Price Action: Shares of Nano Dimension gained 0.9% to settle at $3.26 on Tuesday.

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