Markets move faster than ever these days, and yesterday's winners can be today's losers. When prices exceed fundamentals, traders often rely on technical indicators and signals to guide their decisions. Momentum indicators such as the Relative Strength Index (RSI) do not have predictive power, but they do provide clues about where a stock may be headed and how much strength is backing the move. Using a combination of indicators together can provide strong evidence that a downtrend is about to break. Or, in the case of these three stocks, that the uptrend is losing momentum.
The technology sector has been one of the most volatile parts of the market over the past few weeks, with the Nasdaq 100 fluctuating more than 2% in a single day on multiple occasions. While volatile trading periods make for good times for day traders, it can be difficult to measure the market when the indices move by 2% every day. This is where technical analysis begins. Technical indicators use recent price data to generate possible signals about shifts or continuation of momentum. Using technical analysis, we can make educated predictions about the future direction of a stock based on the magnitude of buy or sell activity around it.
Each of the following three stocks fits a specific set of criteria. All three have gained 20% or more over the past 12 months, driven by a variety of fundamental and macro factors. However, these stocks are currently showing technical warning signs that investors should carefully monitor.
Fortinet: Overbought Peak with Insider Selling Warning
Fortinet Today
As of 06/12/2026 04:00 PM Eastern
- 52 week interval
- $70.12
▼
$150.07
- The P/E ratio
- 56.49
- Target Value
- $107.77
Company Fortinet Inc. NASDAQ: FTNT has been telling “software is not dead”. The $106 billion cybersecurity firm has seen its stock grow at a pace of more than 80% year-to-date (YTD), including more than 70% in the past three months alone.
The software sector has been seen in various areas of agent AI, as well as funds such as the iShares Expanded Tech-Software Sector ETF Bats: IGV lost more than 35% of its value between September and April. However, strong gains from companies like Fortinet have shown that AI can complement software platforms rather than wipe them out. Fortinet beat expectations in Q1 2026, beating both high and low estimates and posting 20% year-over-year (YOY) revenue growth.
Management also raised full-year guidance and repurchased more than $800 million worth of stock. So why is this stock on the “time to sell” list? Because sometimes the most important technical signals are not shown on the charts. Insiders have been selling the stock at a rapid rate over the last two quarters, including a $23 million sale from CEO Ken Xie.
There have been no significant insider purchases in the past year, and insider sales in the tech space are usually a warning sign. Widening Bollinger Bands indicate that volatile trading has become the norm for FTNT shares, and the Moving Average Convergence Divergence (MACD) indicator has turned bearish following a strong rally. The company's long-term fundamentals still look promising, but it may be wise to take a short-term profit now.
Amprius: Technological Decay Among Negative Catalysts
Amprius Technologies Today
Amprius Technologies
- 52 week interval
- $3.43
▼
$24.23
- Target Value
- $21.67
Amprius Technologies Inc. NYSE: AMPX it doesn't have the strong foundation that Fortinet has, which means its decline can be very sharp.
The lithium-ion battery maker beat revenue estimates, and its stock is still up more than 100% YTD, but the rally is faltering amid concerns about revenue quality. A recent short-trader report says the company is increasing its orders and making undisclosed deals with a related party linked to Amprius' CEO.
The company also reported a larger-than-expected loss in its Q1 2026 earnings report on May 6, and insiders sold $83 million worth of shares over the past three quarters, without buying a single one.
AMPX may be headed for a dreaded double top pattern, and some signs suggest the fun is over. Both the RSI and the MACD have been falling since mid-March, and now the former has spent most of the last six weeks in bearish territory. AMPX is not profitable yet, and short sellers are openly questioning its sources of income, so it would be wise to avoid this stock or take a profit while you can.
AppLovin: Death Cross Covers Basic Power
AppLovin Today
As of 06/12/2026 04:00 PM Eastern
- 52 week interval
- $320.00
▼
$745.61
- The P/E ratio
- 42.68
- Target Value
- $669.62
Rating of the company AppLovin Corp. NASDAQ: APP it's already down more than 25% YTD, even though it grew revenue by more than 56% in Q1 2026, and is still viewed favorably by analysts. But despite the strong fundamental picture, the stock is in the grip of a bear market that seems hard to shake.
It may seem counterintuitive, but APP shares likely won't show the company's strength until the technology setup improves.
The Death Cross of early March indicated that the stock has a long way to go before regaining buying momentum.
The death cross sent the stock below the 50-day and 200-day lows, where it remained until the end of May.
APP shares tried to pull out at the end of May, but traders quickly pushed the share price below the 200-day moving average, and it is now retesting the 50-day moving average. With the RSI also below 50, APP shares can stay on your watch list until they make a significant move above the 50-day moving average.
Before you consider Fortinet, you'll want to hear this.
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