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.

Roku, Inc. (NASDAQ:ROKU)

• Roku reported better-than-expected second-quarter results and issued strong third-quarter guidance. The company’s stock has a 52-week high of $89.71. .
• RSI Value: 72.91
• ROKU Price Action: Shares of Roku jumped 31.4% to close at $89.61 on Friday.

Cumulus Media Inc. (NASDAQ:CMLS)

Madison Square Garden Sports Corp. (NYSE:MSGS)

• Madison Square Garden Sports will replace Aerojet Rocketdyne in the S&P SmallCap 600 effective prior to the opening of trading on Aug. 1. The company has a 52-week high of $213.54.
• RSI Value: 77.43
• MSGS Price Action: Shares of Madison Square Garden Sports gained 11.7% to close at $212.24 on Friday.

Cardlytics, Inc. (NASDAQ:CDLX)

• Cardlytics named Alexis DeSieno as new Chief Financial Officer. The company’s 52-week high is $18.21.
• RSI Value: 70.58
• CDLX Price Action: Shares of Cardlytics rose 14.3% to close at $11.01 on Friday.

Spok Holdings, Inc. (NASDAQ:SPOK)

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