Top 2 Tech Stocks That May Crash This Quarter

As of Sept. 11, 2024, 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.

IBM IBM

• On Sept. 9, IBM has entered into a definitive agreement to acquire its portfolio company, Accelalpha, Inc. The company's stock gained around 8% over the past month and has a 52-week high of $205.95.
• RSI Value: 71.10                              
• IBM Price Action: Shares of IBM gained 0.9% to close at $205.32 on Tuesday.

Oracle Corp ORCL

• On Sept. 9, Oracle reported quarterly earnings of $1.39 per share, which beat the analyst consensus estimate of $1.32 by 5.3%. Quarterly revenue came in at $13.307 billion, beating the consensus estimate of $13.231 billion and representing a 6.86% increase over the same period last year. The company's stock gained around 18% over the past month and has a 52-week high of $160.52.
• RSI Value: 73.05
• ORCL Price Action: Shares of Oracle gained 11.4% to close at $155.89 on Tuesday.

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