Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of June 18, 2024, two 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.
AST SpaceMobile Inc (NASDAQ:ASTS)
- On May 29, AST SpaceMobile announced a partnership with Verizon Communications Inc (NYSE:VZ) to provide Verizon customers with direct-to-cellular AST SpaceMobile service when needed. "This new partnership with Verizon will enable AST SpaceMobile to target 100% coverage of the continental United States on premium 850 MHz spectrum with two major U.S. mobile operators in the most valuable wireless market in the world, a transformational commercial milestone," said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile. The company's stock gained around 123% over the past month and has a 52-week high of $12.37.
- RSI Value: 85.26
- ASTS Price Action: Shares of AST SpaceMobile rose 15% to close at $11.75 on Monday.
- On May 24, B of A Securities upgraded the stock from Neutral to Buy and raised its price target from $13 to $15. The company's stock gained around 23% over the past month and has a 52-week high of $15.73.
- RSI Value: 70
- MGNI Price Action: Shares of Magnite rose 1% to close at $13.86 on Monday.
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