With market volatility intensifying amid ongoing geopolitical tensions in the Middle East, several stocks are flashing warning signs.
In particular, some equities are overbought, having surged sharply in recent sessions. As highlighted by their elevated relative strength index (RSI), this technical indicator now suggests they may be primed for a correction.
Oracle (NYSE: ORCL)
Oracle (NYSE: ORCL) shares dipped 1.3% in the last session to close at $208.18, but the stock remains elevated following a strong fiscal fourth-quarter report. Over the past week, the stock has spiked almost 18%.
To this end, ORCL’s 14-day RSI has hit 79, well above the overbought threshold of 70.
This technical signal comes as Oracle positions itself as a key player in the AI-driven cloud infrastructure. For the quarter ending in May, the company reported revenue of $15.9 billion, an 11% year-over-year increase that topped analyst expectations.
More notably, CEO Safra Catz forecasted “dramatically higher” revenue growth for fiscal 2026, with cloud services projected to grow from 24% to 40% and cloud infrastructure expected to surge over 70%, up from 50%.
Major partnerships have also buoyed the stock. In January, Oracle joined Stargate in a multibillion-dollar AI data center initiative alongside OpenAI, SoftBank, and others. The project could attract up to $500 billion in private investment by 2029.
Viasat (NASDAQ: VSAT)
Viasat (NASDAQ: VSAT) has also rallied recently, closing its latest session up 0.53% at $13.16. The gains are more elevated in the weekly timeframes, where VSAT is up by almost 23%.
However, its 14-day RSI now sits at 77.69, another indication the stock may be overbought.
Viasat’s expansion into satellite communications has partly fueled the rally. The company is deploying two major satellites to boost its capabilities and has outlined a long-term strategy focused on asset monetization and debt reduction.
Adding to investor enthusiasm, Viasat landed a $568 million Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. General Services Administration in December 2024. The five-year deal will support the modernization of the military communications infrastructure.
While the fundamentals appear solid, Viasat’s rapid ascent and high RSI could signal that the market is getting ahead.
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