Top 3 Tech Stocks That May Plunge This Month

As of Jan. 24, 2024, three 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.

SAP SE SAP

• SAP said fourth-quarter total revenue increased 5%. Christian Klein, CEO said, "SAP has delivered: We met or exceeded our outlook for 2023 in all key metrics. Based on a stellar order entry, our current cloud backlog expanded by 27% - an all-time high. We are confident about the company's prospects in 2024." The company’s stock jumped around 10% over the past five days and has a 52-week high of $163.73 .
• RSI Value: 78.32
• SAP Price Action: Shares of SAP gained 0.1% to close at $163.38 on Tuesday.

LiveRamp Holdings, Inc. RAMP

• On Jan. 18, LiveRamp entered into an agreement to acquire Habu for about $200 million and reported preliminary third-quarter revenue results above expectations. The company’s stock gained around 9% over the past five days and has a 52-week high of $42.66.
• RSI Value: 70.46
• RAMP Price Action: Shares of LiveRamp Holdings fell 1.3% to close at $40.93 on Tuesday.

ASML Holding N.V. ASML

• On Jan. 24, ASML Holding posted upbeat quarterly earnings. "We expect first-quarter net sales between €5.0 billion and €5.5 billion with a gross margin between 48% and 49%. ASML expects R&D costs of around €1,070 million and SG&A costs of around €300 million. In spite of the positive signs as described above, we maintain our conservative view for the total year and expect 2024 revenue to be similar to 2023. We also expect 2024 to be an important year to prepare for significant growth that we expect for 2025," said ASML President and Chief Executive Officer Peter Wennink. The company’s stock jumped around 10% over the past five days and has a 52-week high of $778.67.
• RSI Value: 76.36
• ASML Price Action: Shares of ASML gained 1.5% to close at $778.39 on Tuesday.

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