Top 4 Tech Stocks That May Collapse In October

Author: Lisa Levin | October 30, 2023 08:35am

The most overbought stocks in the information technology sector presents an opportunity to go short on these overvalued companies.

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.

Here’s the latest list of major overbought players in this sector.

EngageSmart, Inc. (NYSE:ESMT)

• EngageSmart announced it would be acquired by Vista Equity Partners for $23 per share. The company’s stock has a 52-week high of $22.74. .
• RSI Value: 72.53
• ESMT Price Action: Shares of EngageSmart gained 0.4% to close at $22.68 on Friday.

Splunk Inc. (NASDAQ:SPLK)

• Cisco (NASDAQ:CSCO) announced it will acquire Splunk for roughly $28 billion. The company’s stock has a 52-week high of $148.50.
• RSI Value: 72.10
• SPLK Price Action: Shares of Splunk rose 0.1% to close at $147.14 on Friday.

BSQUARE Corporation (NASDAQ:BSQR)

• Bsquare agreed to be acquired by Kontron America for $1.90 per share, representing an implied equity value of approximately $38 million. The company has a 52-week high of $1.85.
• RSI Value: 84.78
• BSQR Price Action: Shares of BSQUARE closed at $1.84 on Friday.

PCTEL, Inc. (NASDAQ:PCTI)

• Amphenol Corp (NYSE:APH) inked a deal to acquire PCTEL for around $139.7 million. The company’s 52-week high is $6.89.
• RSI Value: 85.81
• PCTI Price Action: Shares of PCTEL fell 0.2% to close at $6.84 on Friday.

 

Read More: Insiders Buying Texas Capital Bancshares And 2 Other Stocks

Posted In: APH BSQR CSCO ESMT PCTI SPLK