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Two Tech Giants Flashing Overbought Signals This December

MarketDash Editorial Team
4 days ago
Apple and Accenture are showing RSI readings above 70, traditionally viewed as overbought territory. Here's what momentum traders need to know about these tech sector warnings and what's driving the recent price action.

When stocks run too hot, too fast, momentum traders start paying attention. As of December 4, 2025, two major players in the information technology sector are flashing warning signs that their recent rallies might need a breather.

The culprit here is the Relative Strength Index, or RSI, a momentum indicator that compares how a stock performs on up days versus down days. Think of it as a fever thermometer for stocks. When the RSI climbs above 70, a stock is generally considered overbought, meaning it might be due for a pullback as traders take profits.

Here's what's happening with these two tech heavyweights.

Apple Approaches Overbought Territory

Apple Inc. (AAPL) is riding high after a solid month of gains, and the momentum is showing in the numbers.

  • On December 2, Loop Capital analyst Gary Mobley maintained a Buy rating on Apple and bumped the price target from $315 to $325. The stock has climbed about 5% over the past month and recently hit a 52-week high of $288.62.
  • RSI Value: 70.4
  • Price Action: Shares of Apple dipped 0.7% to close at $284.15 on Wednesday, still hovering near those elevated levels.
  • Edge Stock Ratings show an 80.70 momentum score, though the value rating sits at just 4.33, suggesting the stock's strength is more about momentum than fundamental bargains.

Apple's RSI just barely crosses into overbought territory, which isn't necessarily a sell signal but rather a heads-up that the stock's recent run might be getting stretched.

Accenture Surges on AI Partnership News

Accenture Plc (ACN) is showing even more intense momentum signals, with its RSI pushing well into overbought territory.

  • On December 3, Accenture and Snowflake (SNOW) announced plans to expand their partnership, focusing on scaling generative AI innovation for clients including Caterpillar. "In today's rapidly evolving market, companies are under immense pressure to reinvent their operations and business models to stay ahead," said Manish Sharma, chief strategy and services officer at Accenture. "The Accenture Snowflake Business Group will help clients to better leverage Snowflake's unique foundation of reliable, accessible, contextualized data, coupled with Accenture's ability to unlock the power of advanced AI for clients faster."
  • RSI Value: 75.3
  • Price Action: Shares of Accenture jumped 4.5% to close at $272.85 on Wednesday, capping off a five-day stretch where the stock gained approximately 8%. The 52-week high stands at $398.35.

That 75.3 RSI reading is notably elevated, suggesting Accenture's recent sprint higher has been particularly aggressive. The AI partnership announcement clearly got investors excited, but the question for momentum traders is whether there's still room to run or if profit-taking is around the corner.

For traders who follow technical indicators closely, these readings aren't necessarily reasons to panic or sell immediately. They're simply signals that these stocks have experienced strong buying pressure recently and may be vulnerable to short-term pullbacks as that momentum fades. Whether that happens depends on continued catalysts and overall market conditions.

Back to News

Two Tech Giants Flashing Overbought Signals This December

MarketDash Editorial Team
4 days ago
Apple and Accenture are showing RSI readings above 70, traditionally viewed as overbought territory. Here's what momentum traders need to know about these tech sector warnings and what's driving the recent price action.

When stocks run too hot, too fast, momentum traders start paying attention. As of December 4, 2025, two major players in the information technology sector are flashing warning signs that their recent rallies might need a breather.

The culprit here is the Relative Strength Index, or RSI, a momentum indicator that compares how a stock performs on up days versus down days. Think of it as a fever thermometer for stocks. When the RSI climbs above 70, a stock is generally considered overbought, meaning it might be due for a pullback as traders take profits.

Here's what's happening with these two tech heavyweights.

Apple Approaches Overbought Territory

Apple Inc. (AAPL) is riding high after a solid month of gains, and the momentum is showing in the numbers.

  • On December 2, Loop Capital analyst Gary Mobley maintained a Buy rating on Apple and bumped the price target from $315 to $325. The stock has climbed about 5% over the past month and recently hit a 52-week high of $288.62.
  • RSI Value: 70.4
  • Price Action: Shares of Apple dipped 0.7% to close at $284.15 on Wednesday, still hovering near those elevated levels.
  • Edge Stock Ratings show an 80.70 momentum score, though the value rating sits at just 4.33, suggesting the stock's strength is more about momentum than fundamental bargains.

Apple's RSI just barely crosses into overbought territory, which isn't necessarily a sell signal but rather a heads-up that the stock's recent run might be getting stretched.

Accenture Surges on AI Partnership News

Accenture Plc (ACN) is showing even more intense momentum signals, with its RSI pushing well into overbought territory.

  • On December 3, Accenture and Snowflake (SNOW) announced plans to expand their partnership, focusing on scaling generative AI innovation for clients including Caterpillar. "In today's rapidly evolving market, companies are under immense pressure to reinvent their operations and business models to stay ahead," said Manish Sharma, chief strategy and services officer at Accenture. "The Accenture Snowflake Business Group will help clients to better leverage Snowflake's unique foundation of reliable, accessible, contextualized data, coupled with Accenture's ability to unlock the power of advanced AI for clients faster."
  • RSI Value: 75.3
  • Price Action: Shares of Accenture jumped 4.5% to close at $272.85 on Wednesday, capping off a five-day stretch where the stock gained approximately 8%. The 52-week high stands at $398.35.

That 75.3 RSI reading is notably elevated, suggesting Accenture's recent sprint higher has been particularly aggressive. The AI partnership announcement clearly got investors excited, but the question for momentum traders is whether there's still room to run or if profit-taking is around the corner.

For traders who follow technical indicators closely, these readings aren't necessarily reasons to panic or sell immediately. They're simply signals that these stocks have experienced strong buying pressure recently and may be vulnerable to short-term pullbacks as that momentum fades. Whether that happens depends on continued catalysts and overall market conditions.