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Tech Stocks Flashing Overbought Warnings: Two Names to Watch

MarketDash Editorial Team
19 days ago
Two information technology stocks are showing momentum indicators that suggest they may be due for a pullback, with RSI readings above the critical 70 threshold that typically signals overbought conditions.

Sometimes the hardest part of investing isn't finding winners—it's knowing when those winners might need a breather. As of November 19, 2025, two information technology stocks are flashing momentum warnings that suggest they could be headed for a correction.

The culprit here is the Relative Strength Index, or RSI, which measures how forcefully a stock has been moving. Think of it as a speedometer for momentum. The indicator compares a stock's strength on up days versus down days, giving traders insight into whether a rally might be running out of gas. When the RSI climbs above 70, it typically signals that an asset has gotten ahead of itself and could be vulnerable to a pullback.

ChipMOS Technologies Inc - ADR

ChipMOS Technologies (IMOS) has been on quite a run lately. The semiconductor assembly and testing company posted third-quarter earnings of 33 cents per share on November 11, up from 26 cents in the same period last year. Investors loved it—the stock has rocketed 39% higher over the past month alone and recently touched a 52-week high of $30.98.

RSI Value: 72.2

IMOS Price Action: Shares jumped 3.3% to close at $29.50 on Tuesday.

For context, the stock carries a momentum score of 88.06 and a value rating of 93.28, suggesting strong technical performance even as it enters overbought territory.

PROS Holdings, Inc.

PROS Holdings (PRO), a provider of AI-powered pricing and revenue management software, has also been climbing steadily. The company delivered better-than-expected quarterly results on October 27, fueling a 28% gain over the past six months. The stock recently hit a 52-week high of $29.84.

RSI Value: 70.5

PRO Price Action: Shares dipped 0.3% to close at $23.05 on Tuesday.

The elevated RSI readings for both stocks don't guarantee an imminent drop, but they do suggest that momentum traders might want to exercise caution. When stocks get this stretched, they become more susceptible to profit-taking and pullbacks, especially if any negative news emerges or broader market conditions shift. For investors who use technical indicators as part of their strategy, these are names worth watching closely in the near term.

Back to News

Tech Stocks Flashing Overbought Warnings: Two Names to Watch

MarketDash Editorial Team
19 days ago
Two information technology stocks are showing momentum indicators that suggest they may be due for a pullback, with RSI readings above the critical 70 threshold that typically signals overbought conditions.

Sometimes the hardest part of investing isn't finding winners—it's knowing when those winners might need a breather. As of November 19, 2025, two information technology stocks are flashing momentum warnings that suggest they could be headed for a correction.

The culprit here is the Relative Strength Index, or RSI, which measures how forcefully a stock has been moving. Think of it as a speedometer for momentum. The indicator compares a stock's strength on up days versus down days, giving traders insight into whether a rally might be running out of gas. When the RSI climbs above 70, it typically signals that an asset has gotten ahead of itself and could be vulnerable to a pullback.

ChipMOS Technologies Inc - ADR

ChipMOS Technologies (IMOS) has been on quite a run lately. The semiconductor assembly and testing company posted third-quarter earnings of 33 cents per share on November 11, up from 26 cents in the same period last year. Investors loved it—the stock has rocketed 39% higher over the past month alone and recently touched a 52-week high of $30.98.

RSI Value: 72.2

IMOS Price Action: Shares jumped 3.3% to close at $29.50 on Tuesday.

For context, the stock carries a momentum score of 88.06 and a value rating of 93.28, suggesting strong technical performance even as it enters overbought territory.

PROS Holdings, Inc.

PROS Holdings (PRO), a provider of AI-powered pricing and revenue management software, has also been climbing steadily. The company delivered better-than-expected quarterly results on October 27, fueling a 28% gain over the past six months. The stock recently hit a 52-week high of $29.84.

RSI Value: 70.5

PRO Price Action: Shares dipped 0.3% to close at $23.05 on Tuesday.

The elevated RSI readings for both stocks don't guarantee an imminent drop, but they do suggest that momentum traders might want to exercise caution. When stocks get this stretched, they become more susceptible to profit-taking and pullbacks, especially if any negative news emerges or broader market conditions shift. For investors who use technical indicators as part of their strategy, these are names worth watching closely in the near term.

    Tech Stocks Flashing Overbought Warnings: Two Names to Watch - MarketDash News