Top 5 Tech Stocks That May Crash In Q2

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.

Sonim Technologies, Inc. SONM

• Sonim Technologies received a $14.7 million purchase order for tablet products designed by Sonim and assembled via an ODM relationship. The company’s stock has a 52-week high of $1.24 .
• RSI Value: 89.04
• SONM Price Action: Shares of Sonim Technologies gained 4.2% to close at $1.23 on Tuesday.

TROOPS, Inc. TROO

• TROOPS recently formed a special committee to investigate allegations against Independent Director Mr. Wang Tai Dominic Li. The company’s stock has a 52-week high of $4.57.
• RSI Value: 71.91
• TROO Price Action: Shares of TROOPS gained 2.8% to close at $4.35 on Tuesday.

Dell Technologies Inc. DELL

• Evercore reportedly said it believed the company could be added to the S&P. The company has a 52-week high of $52.60.
• RSI Value: 73.15
• DELL Price Action: Shares of Dell Technologies gained 3.6% to close at $45.50 on Tuesday.

National Instruments Corporation NATI

• Emerson Electric agreed to acquire the company for $60 per share. The company’s 52-week high is $58.24.
• RSI Value: 83.88
• NATI Price Action: Shares of National Instruments rose 0.1% to close at $58.20 on Tuesday.

Vertex, Inc. VERX

• Vertex reported better-than-expected Q4 results. David DeStefano, Chief Executive Officer, said, “The fourth quarter wrapped up a very strong year for Vertex. Revenue growth accelerated, profitability was strong, and we delivered positive free cash flow.” The company has a 52-week high of $22.96.
• RSI Value: 70.99
• VERX Price Action: Shares of Vertex fell 1.4% to settle at $22.07 on Tuesday.

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