Top 2 Tech And Telecom Stocks That May Crash In August

As of Aug 7, 2024, two stocks in the communication services 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.

Marchex Inc MCHX

• Marchex will release financial results for its second quarter of 2024, on Aug. 8, 2024.  The company's stock gained around 31% over the past month and has a 52-week high of $1.99.
• RSI Value: 73.19                              
• MCHX Price Action: Shares of Marchex gained 2.8% to close at $1.86 on Tuesday.

Lumen Technologies Inc LUMN

• On Aug. 6, Lumen Technologies reported quarterly losses of 13 cents per share, which missed the analyst consensus estimate of losses of 6 cents per share. Quarterly sales came in at $3.268 billion, which beat the analyst consensus estimate of $3.246 billion by 0.69%. "The rising demand of AI is requiring greater connectivity between data centers, and Lumen's world-class fiber network and forward-thinking digital services are positioning us to help drive the AI growth wave," said Kate Johnson, president and CEO of Lumen Technologies. "We feel confident in our future growth and business transformation as we look to enable the AI economy." The company's stock gained around 372% over the past month and has a 52-week high of $5.30.
• RSI Value: 89.54
• LUMN Price Action: Shares of Lumen Technologies jumped 93.1% to close at $5.00 on Tuesday.

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