Oversold stocks in the information technology sector offer compelling opportunities to invest in undervalued companies. The Relative Strength Index (RSI), a key momentum indicator, compares the magnitude of recent price gains to losses. Traders view assets with an RSI below 30 as oversold, signaling potential short-term rebounds.
Leading Oversold Tech Stocks
Recent analysis highlights major players in this sector with RSI levels near or below 30. These stocks show promise for recovery in the first quarter.
Docusign Inc (NASDAQ: DOCU)
BTIG analyst Allan Verkhovski upheld a Buy rating on Docusign on February 18, while trimming the price target to $70 from $88. The shares dropped about 23% over the past month and hit a 52-week low of $41.53. Current RSI sits at 29.9.
On Friday, Docusign shares climbed 0.8% to end at $44.48, reflecting building momentum with a value score of 57.92.
Sequans Communications SA ADR (NYSE: SQNS)
This communications technology firm ranks among the most oversold in the sector, with an RSI near or below 30, positioning it for a possible Q1 upswing.
Elastic NV (NYSE: ESTC)
Elastic NV also appears on the list of oversold tech stocks, sporting an RSI close to 30. Investors watch for signs of reversal amid broader sector dynamics.
