As of Dec. 4, 2024, three 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.
Meta Platforms Inc (NASDAQ:META)
- Meta Platforms plans to build a massive fiber-optic subsea cable and become its sole owner. The cable would reportedly span 40,000-kilometers and give Meta a dedicated pipe for data traffic worldwide. The company's stock gained around 8% over the past five days and has a 52-week high of $614.20.
- RSI Value: 70.00
- META Price Action: Shares of Meta Platforms jumped 3.5% to close at $613.65 on Tuesday.
- Benzinga Pro's real-time newsfeed alerted to latest META news.
Netflix Inc (NASDAQ:NFLX)
- On Dec. 2, Canaccord Genuity analyst Maria Ripps maintained Netflix with a Hold and raised the price target from $760 to $940. The company's stock gained around 19% over the past month and has a 52-week high of $908.00.
- RSI Value: 74.80
- NFLX Price Action: Shares of Netflix gained 0.5% to close at $902.17 on Tuesday.
- Benzinga Pro's charting tool helped identify the trend in NFLX stock.
Walt Disney Co (NYSE:DIS)
- On Nov. 18, Evercore ISI Group analyst Vijay Jayant maintained Walt Disney with an Outperform and raised the price target from $128 to $134. The company's stock gained around 22% over the past month and has a 52-week high of $123.74.
- RSI Value: 72.99
- DIS Price Action: Shares of Disney fell 0.6% to close at $116.45 on Tuesday.
- Benzinga Pro's signals feature notified of a potential breakout in DIS shares.
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