HomeMarket NewsSmall Caps Cautionary Signals: Top Tech And Telecom Stocks Heading South Cautionary Signals: Top Tech...

Cautionary Signals: Top Tech And Telecom Stocks Heading South Cautionary Signals: Top Tech And Telecom Stocks Heading South

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As of Feb. 9, 2024, five stocks in the communication services 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.

Rumble Inc. RUM

  • On Jan. 22, Rumble announced a partnership with Barstool Sports. β€œRumble is quickly emerging as a leading platform for the under-30 demographic, and we’re excited for Barstool Sports to be a significant part of our rapid growth,” said Chris Pavlovski, chairman and CEO of Rumble. The company’s stock gained around 93% over the past month and has a 52-week high of $11.25 .
  • RSI Value: 70.87
  • RUM Price Action: Shares of Rumble fell 1.1% to close at $7.97 on Thursday.

The Walt Disney Company DIS

  • On Feb. 7, Disney reported better-than-expected earnings for its first quarter and declared a cash dividend of 45 cents per share. The company announced a new share repurchase program and said it expects fiscal 2024 earnings of roughly $4.60 per share. Disney also announced a $1.5 billion investment in leading video game company Epic Games. The company’s stock jumped around 15% over the past five days and has a 52-week high of $112.77.
  • RSI Value: 80.75
  • DIS Price Action: Shares of Disney gained 11.5% to close at $110.54 on Thursday.

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Read More: Investor Sentiment Edges Higher As S&P 500 Briefly Breaches 5,000 Level


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