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Two Tech Stocks Flashing Overbought Warnings This December

MarketDash Editorial Team
11 hours ago
Cognizant Technology Solutions and Semrush are showing RSI readings well above 70, suggesting momentum traders might want to take a closer look at these rallying tech names before year-end.

If you're the type of investor who pays attention to momentum indicators, a couple of tech stocks might deserve a second look before you head into the holiday season. As of Dec. 18, 2025, two names in the information technology sector are flashing overbought signals that could make momentum-focused traders a bit nervous.

The Relative Strength Index (RSI) is one of those handy momentum tools that compares how a stock performs on up days versus down days. It gives you a sense of whether something has run too hot, too fast. Generally speaking, when the RSI climbs above 70, an asset is considered overbought. That doesn't mean it's guaranteed to fall, but it does suggest the rally might be getting a little ahead of itself.

Here are two major tech players currently sitting well above that threshold.

Cognizant Technology Solutions Corp. (CTSH)

On Dec. 16, Cognizant locked in a five-year IT services agreement with ERIKS, extending a partnership that dates back to 2017. "ERIKS and Cognizant have built a strong and collaborative relationship since 2017," said Saket Gulati, Senior Vice President and Head of Northern Europe at Cognizant. "This new agreement elevates our partnership to a truly strategic level. Being selected as a trusted partner for the next five years is a testament to the confidence ERIKS places in our capabilities, and it recognises the excellent work and close cooperation our teams have delivered over the past years."

The stock has responded enthusiastically, gaining around 17% over the past month. Shares have climbed to within striking distance of the 52-week high of $90.82.

RSI Value: 78.4

CTSH Price Action: Shares of Cognizant Technology closed at $83.63 on Wednesday.

Edge Stock Ratings: 47.50 Momentum score with Value at 58.38.

Semrush (SEMR)

Semrush announced on Dec. 17 that it launched its official app in ChatGPT, a move designed to help marketers access data and insights without leaving the ChatGPT interface. "Marketers today win with data and speed – they must quickly sift through large data to draw relevant insights and determine their next move. The Semrush app in ChatGPT enables them to operate intelligently and efficiently, all within the ChatGPT interface," said Vitalii Obischenko, Chief Product Officer at Semrush.

The market has been even more enthusiastic about this development. The company's stock has surged around 75% over the past month, approaching its 52-week high of $18.74.

RSI Value: 81.4

SEMR Price Action: Shares of Semrush closed at $11.86 on Wednesday.

Both stocks have had impressive runs, but with RSI readings this elevated, momentum traders might want to proceed with caution. Overbought doesn't mean a stock can't keep climbing, but it does suggest the easy money might already be on the table.

Back to News

Two Tech Stocks Flashing Overbought Warnings This December

MarketDash Editorial Team
11 hours ago
Cognizant Technology Solutions and Semrush are showing RSI readings well above 70, suggesting momentum traders might want to take a closer look at these rallying tech names before year-end.

If you're the type of investor who pays attention to momentum indicators, a couple of tech stocks might deserve a second look before you head into the holiday season. As of Dec. 18, 2025, two names in the information technology sector are flashing overbought signals that could make momentum-focused traders a bit nervous.

The Relative Strength Index (RSI) is one of those handy momentum tools that compares how a stock performs on up days versus down days. It gives you a sense of whether something has run too hot, too fast. Generally speaking, when the RSI climbs above 70, an asset is considered overbought. That doesn't mean it's guaranteed to fall, but it does suggest the rally might be getting a little ahead of itself.

Here are two major tech players currently sitting well above that threshold.

Cognizant Technology Solutions Corp. (CTSH)

On Dec. 16, Cognizant locked in a five-year IT services agreement with ERIKS, extending a partnership that dates back to 2017. "ERIKS and Cognizant have built a strong and collaborative relationship since 2017," said Saket Gulati, Senior Vice President and Head of Northern Europe at Cognizant. "This new agreement elevates our partnership to a truly strategic level. Being selected as a trusted partner for the next five years is a testament to the confidence ERIKS places in our capabilities, and it recognises the excellent work and close cooperation our teams have delivered over the past years."

The stock has responded enthusiastically, gaining around 17% over the past month. Shares have climbed to within striking distance of the 52-week high of $90.82.

RSI Value: 78.4

CTSH Price Action: Shares of Cognizant Technology closed at $83.63 on Wednesday.

Edge Stock Ratings: 47.50 Momentum score with Value at 58.38.

Semrush (SEMR)

Semrush announced on Dec. 17 that it launched its official app in ChatGPT, a move designed to help marketers access data and insights without leaving the ChatGPT interface. "Marketers today win with data and speed – they must quickly sift through large data to draw relevant insights and determine their next move. The Semrush app in ChatGPT enables them to operate intelligently and efficiently, all within the ChatGPT interface," said Vitalii Obischenko, Chief Product Officer at Semrush.

The market has been even more enthusiastic about this development. The company's stock has surged around 75% over the past month, approaching its 52-week high of $18.74.

RSI Value: 81.4

SEMR Price Action: Shares of Semrush closed at $11.86 on Wednesday.

Both stocks have had impressive runs, but with RSI readings this elevated, momentum traders might want to proceed with caution. Overbought doesn't mean a stock can't keep climbing, but it does suggest the easy money might already be on the table.