Top 4 Tech Stocks That May Collapse In October

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.

Jabil Inc. (NYSE:JBL)

• Jabil reported mixed fourth-quarter results and issued strong first-quarter earnings guidance. "The team delivered yet another solid year and I'm pleased with the progress we've made relative to our financial objectives. As we move into the new fiscal year, I feel strongly that we have the right team, capabilities, and diversified portfolio to support good momentum into FY24 and beyond. And none of this would be possible, without our thriving and unified Jabil culture, which is as strong today as it's ever been," stated CEO Kenny Wilson. The company’s stock has a 52-week high of $130.77. .
• RSI Value: 73.20
• JBL Price Action: Shares of Jabil fell 0.9% to close at $129.00 on Thursday.

New Relic, Inc. (NYSE:NEWR)

• New Relic reported better-than-expected first-quarter financial results and announced it will be acquired by Francisco Partners and TPG for $6.5 billion. The company’s stock has a 52-week high of $86.05.
• RSI Value: 77.91
• NEWR Price Action: Shares of New Relic closed at $85.95 on Thursday.

PFSweb, Inc. (NASDAQ:PFSW)

• GXO Logistics Inc (NYSE:GXO) entered into a definitive agreement to acquire eCommerce order fulfillment provider PFSweb for $7.50 per share in cash, representing an equity value of approximately $181 million. The company has a 52-week high of $11.45.
• RSI Value: 83.80
• PFSW Price Action: Shares of PFSweb rose 0.1% to close at $7.45 on Thursday.

Splunk Inc. (NASDAQ:SPLK)

• Cisco (NASDAQ:CSCO) announced it will acquire the company for roughly $28 billion. The company’s 52-week high is $147.14.
• RSI Value: 83.85
• SPLK Price Action: Shares of Splunk rose 0.2% to close at $146.98 on Thursday.

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