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.

Lizhi Inc. (NASDAQ:LIZI)

• Lizhi reported a rise in quarterly sales results. “We are pleased to announce a stellar performance for the first quarter, posting new record highs for both revenues and net income,” said Mr. Jinnan (Marco) Lai, Founder and CEO of LIZHI. The company’s stock has a 52-week high of $1.88 .
• RSI Value: 79.47
• LIZI Price Action: Shares of Lizhi rose 14.3% to close at $0.9150 on Tuesday.

Yalla Group Limited (NYSE:YALA)

• The company said revenues rose 1.6% year-over-year to $73.5 million in the first quarter. "We started 2023 with a solid set of operational and financial results. In the first quarter, despite the impact from Ramadan beginning on March 23, our revenues increased by 1.6% year-over-year to US$73.5 million, reaching the upper end of our guidance and once again demonstrating the remarkable strength of our flagship applications," said Mr. Yang Tao, Founder, Chairman and CEO of Yalla. The company’s stock has a 52-week high of $5.57.
• RSI Value: 76.16
• YALA Price Action: Shares of Yalla Group rose 9.5% to close at $4.38 on Tuesday.

Zedge, Inc. (NYSE:ZDGE)

• Zedge shares reported worse-than-expected second-quarter EPS results. "Our second quarter was a mixed one as we navigated geopolitical, economic and industry-specific challenges, and we were not immune to the forces impacting gaming and other advertising-based business models," said Jonathan Reich, chief executive officer. The company has a 52-week high of $5.65.
• RSI Value: 70.99
• ZDGE Price Action: Shares of Zedge rose 3.5% to close at $2.37 on Tuesday.

Oriental Culture Holding LTD (NASDAQ:OCG)

• Oriental Culture Holding was recently granted additional 180 calendar day grace period by Nasdaq to regain compliance with minimum bid price rule. The company’s 52-week high is 3.62.
• RSI Value: 72.96
• OCG Price Action: Shares of Oriental Culture rose 6.1% to close at $0.6790 on Tuesday.

Tremor International Ltd (NASDAQ:TRMR)

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