Top 2 Tech Stocks That May Dip In October

As of Oct. 14, 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.

CompoSecure Inc CMPO

• On Aug. 7, CompoSecure reported better-than-expected second-quarter financial results. “I am pleased to report another record quarter of Net Sales and Adjusted EBITDA, driven by continued growth in our domestic business and strong international demand from the launch of new programs,” said Jon Wilk, President and CEO of CompoSecure. We continue to support our customer’s ability to offer highly attractive premium card programs such as the limited edition Amex White Gold Card and the first Wells Fargo and Expedia co-branded metal card, as well as driving growth with innovative products through our Echo Mirror Card and LED card. The company's stock gained around 16% over the past month and has a 52-week high of $14.39.
• RSI Value: 76.09                              
• CMPO Price Action: Shares of CompoSecure gained 3% to close at $14.30 on Friday.

Coherent Corp COHR

• On Oct. 14, Needham analyst James Ricchiuti maintained Coherent with a Buy and raised the price target from $84 to $120. On Oct. 11, Coherent named Sherri Luther as CFO. The company's stock gained around 39% over the past month and <a href=”https://www.benzinga.com/quote/COHR”><em> has a 52-week high </em></a> of $104.67.
• RSI Value: 85.47
• COHR Price Action: Shares of Coherent rose 5.6% to close at $104.62 on Friday.

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