The most overbought stocks in the communication services 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.

Meta Platforms, Inc. (NASDAQ:META)

• Meta Platforms reported first-quarter revenue of $28.64 billion, which was up 3% year-over-year. The revenue total beat a Street consensus estimate of $27.62 billion. The company’s stock has a 52-week high of $244.92 .
• RSI Value: 71.25
• META Price Action: Shares of Meta Platforms fell 1.6% to close at $239.24 on Tuesday.

Travelzoo (NASDAQ:TZOO)

• Travelzoo posted better-than-expected quarterly results. Barrington Research analyst James C.Goss upgraded Travelzoo from Market Perform to Outperform with a price target of $10. The company’s stock has a 52-week high of $8.47.
• RSI Value: 76.26
• TZOO Price Action: Shares of Travelzoo rose 2.4% to close at $8.21 on Tuesday.

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