Top 3 Tech Stocks That Should Keep You Up At Night In Q2

As of April 2, 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.

SMART Global Holdings, Inc. SGH

• On Jan. 9, SMART Global Holdings reported first-quarter earnings and announced a $75 million share repurchase authorization. The company’s stock gained around 14% over the past month and has a 52-week high of $29.99 .
• RSI Value: 71.09
• SGH Price Action: Shares of SMART Global gained 0.2% to close at $26.38 on Monday.

Micron Technology, Inc. MU

• On April 1, B of A Securities maintained a Buy rating on the stock and raised its price target from $120 to $144. The company’s stock gained around 30% over the past month and has a 52-week high of $127.38.
• RSI Value: 81.92
• MU Price Action: Shares of Micron gained 5.4% to close at $124.30 on Monday.

Ouster, Inc. OUST

• On March 26, Ouster reported fourth-quarter financial results and issued guidance. "Ouster had a transformative year, reporting record revenue of $83 million and bookings of $142 million in 2023. We successfully completed the merger with Velodyne, which solidified our balance sheet, expanded our patent portfolio, and streamlined our cost structure," said Ouster CEO Angus Pacala. The company’s stock gained around 99% over the past five days and has a 52-week high of $10.00.
• RSI Value: 84.45
• OUST Price Action: Shares of Ouster gained 24.2% to close at $9.86 on Monday.

Read More: Investor Sentiment Improves, But Dow Falls Over 200 Points