Top 5 Tech Stocks That May Plunge In Q2
Portfolio Pulse from Avi Kapoor
Five tech stocks are identified as overbought based on their RSI values, indicating potential short-term declines. Rackspace Technology, Daktronics, Consensus Cloud Solutions, AppLovin Corporation, and FormFactor have shown significant price gains recently, but their high RSI readings suggest they may face downward pressure.
May 13, 2024 | 12:45 pm
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NEGATIVE IMPACT
AppLovin's stock jumped 10% post-strong Q1 results, but an RSI of 70.17 points to possible short-term selling pressure.
APP's recent gains and borderline overbought RSI suggest that the stock could experience a temporary downturn as investors potentially lock in profits.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Consensus Cloud Solutions' stock soared 55% in five days after strong Q1 results, but its RSI of 78.73 suggests an imminent risk of decline.
CCSI's rapid price increase and extremely high RSI level indicate overbought conditions, often leading to a corrective pullback.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Despite weak quarterly sales, Daktronics' stock rose 27% in the past month, with an RSI of 77.15 indicating a strong possibility of a near-term pullback.
DAKT's significant stock gain despite weak sales has led to an overbought RSI, typically followed by a price correction.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
FormFactor's stock increased 28% in a month after strong Q1 sales, but its RSI of 75.72 indicates a likely short-term price correction.
FORM's substantial price appreciation and high RSI level suggest the stock is overbought, making a short-term price decline probable.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Rackspace Technology's recent earnings beat and subsequent 23% stock gain pushed its RSI to 71.19, signaling overbought conditions that may lead to a short-term price correction.
RXT's recent price surge and high RSI suggest a potential reversal as traders might take profits, leading to a short-term decline.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90