As of Nov. 13, 2024, four 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.

Olo Inc OLO

• On Nov. 7, Olo posted better-than-expected quarterly earnings. “Team Olo executed well on our top priorities in the third quarter and positioned us to complete a successful 2024. We continued to win, retain, and expand with brands, we drove further innovation across our Order, Pay, and Engage product suites — including the general availability of Olo Pay’s card-present functionality on Qu point-of-sale systems — and we delivered revenue and bottom line performance that exceeded the high-end of our guidance ranges,” said Noah Glass, Olo’s Founder and CEO. The company’s stock gained around 44% over the past month and has a 52-week high of $7.04.
• RSI Value: 90.08
• OLO Price Action: Shares of Olo gained 10.6% to close at $6.90 on Tuesday.

Couchbase Inc BASE

• Couchbase will report financial results for its third quarter ended Oct. 31, on Tuesday, Dec. 3 after market close. The company’s stock gained around 18% over the past month and has a 52-week high </em></a> of $32.00.
• RSI Value: 78.49
• BASE Price Action: Shares of Couchbase gained 5.5% to close at $19.57 on Tuesday.

BILL Holdings Inc BILL

• On Nov. 7, BILL Holdings reported better-than-expected first-quarter financial results and issued FY25 guidance above estimates. The company’s stock jumped around 45% over the past five days and has a 52-week high is $275.52.
• RSI Value: 90.16
• BILL Price Action: Shares of BILL gained 3.6% to close at $89.01 on Tuesday.

Zscaler Inc ZS

• Zscaler will release first quarter fiscal year 2025 earnings after the closing bell on Monday, Dec. 2. The company’s stock jumped around 9% over the past five days and has a 52-week high of $259.58.
• RSI Value: 76.64
• ZS Price Action: Shares of Zscaler climbed 4.8% to close at $209.04 on Tuesday.

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