Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Dec. 13, 2023, 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.
System1, Inc. (NYSE: SST)
- On Oct. 17, System1 announced a strategic partnership with Ecosia, a leading green search engine. The company’s stock jumped around 75% over the past five days and has a 52-week high of $5.58.
- RSI Value: 83.78
- SST Price Action: Shares of System1 gained 20.1% to close at $2.21 on Tuesday.
- On Nov. 13, Gannett Co and USA TODAY announced a multi-year strategic partnership with Home Solutions. The company’s stock gained around 20% over the past month and has a 52-week high of $3.60.
- RSI Value: 70.30
- GCI Price Action: Shares of Gannett gained 16.9% to close at $2.21 on Tuesday.
- On Nov. 14, Tencent Music Entertainment reported a third-quarter revenue decline of 10.8% year-over-year to $900 million, beating the consensus of $875.6 million. The company’s stock jumped around 20% over the past month and has a 52-week high of $9.29.
- RSI Value: 74.84
- TME Price Action: Shares of Tencent Music Entertainment gained 6.7% to close at $8.94 on Tuesday.
- Take-Two Interactive Software recently released a trailer for the highly anticipated "Grand Theft Auto VI". The company’s stock gained around 5% over the past month and has a 52-week high is $161.60.
- RSI Value: 73.39
- TTWO Price Action: Shares of Take-Two gained 3% to close at $157.20 on Tuesday.
- On Nov. 8, Roblox reported third-quarter FY23 Bookings growth of 20% year-on-year to $839.5 million, beating the consensus of $829.9 million. The company’s stock jumped around 8% over the past month and has a 52-week high of $47.65.
- RSI Value: 72.95
- RBLX Price Action: Shares of Roblox gained 3.8% to close at $42.04 on Tuesday.
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