As of July 17, 2026, three stocks in the information technology 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.

Karooooo Ltd (NASDAQ:KARO)

  • On July 15, Karooooo posted better-than-expected first-quarter earnings. “We remain optimistic about the opportunities across our regions and believe we are well positioned to build on the momentum established in the first quarter,” said Zak Calisto, Group CEO. The company’s stock gained around 41% over the past month and has a 52-week high of $66.19.
  • RSI Value: 88.2                                
  • KARO Price Action: Shares of Karooooo rose 11.2% to close at $65.16 on Thursday.
  • Edge Stock Ratings: 88.24 Momentum score with Value at 56.29.

Alarm.com Holdings Inc (NASDAQ:ALRM)

  • On July 16, Alarm.com announced the launch of its Fire Communicator (ADC‑FC100), expanding Alarm.com for Business into the commercial fire category. The company’s stock gained around 20% over the past month and has a 52-week high of $59.53.
  • RSI Value: 83.4
  • ALRM Price Action: Shares of Alarm.com gained 3.4% to close at $54.10 on Thursday.

AstroNova Inc (NASDAQ:ALOT)

  • On June 17, AstroNova announced it will be acquired by Arcline. Jorik Ittmann, President and Chief Executive Officer of AstroNova, said, “This transaction marks an important milestone for AstroNova. Our teams have worked hard over the last year to strengthen the business and position the Company for sustainable growth. Arcline’s interest in our entire enterprise – from our technologies, products, and strategy to our people and customers – makes them the right partner for AstroNova’s next chapter.” The company’s stock gained around 213% over the past six months and has a 52-week high of $28.68.
  • RSI Value: 90.1                
  • ALOT Price Action: Shares of AstroNova closed at $28.59 on Thursday.

Curious about other BZ Edge Rankings? Click here to discover how similar stocks measure up.

Photo via Shutterstock