GET DAILY SIGNALSA Trio of Software Stocks that Could Be Looking at Pullbacks
Over the last few weeks I have found myself looking for possible bearish investments. The rallies off the March lows and then after the little hiccups we saw in September and October have put the four main U.S. indices in overbought territory based on the weekly RSI and weekly stochastic indicators. The S&P, Nasdaq, and Russell are all showing overbought readings on their monthly RSI and stochastic indicators as well. The Dow’s stochastic indicators are in overbought territory, but the RSI isn’t there just yet.
If we use the Sector Select SPDRs as a proxy for each of the sectors and we look at the overbought/oversold indicators for them, we see a number of overbought readings. All but the utilities sector and real estate sectors are in overbought territory based on their weekly stochastic indicators. Only five of the 11 have 10-week RSI readings in overbought territory. That’s using the 70 level as the threshold for overbought. Eight of the 11 have RSI readings above 65, so several of the ones that aren’t overbought are close.
Because of the current situation, I have been looking for specific stocks that I think are ripe for downturns. Stocks that don’t have the best fundamentals, but have gone up with the overall market and have elevated overbought/oversold indicators.
Something that stood out in my search was a trio of software stocks with poor fundamental indicators and high readings on their weekly OB/OS indicators. I found these stocks when I searched for ones that have seen their weekly stochastic indicators make bearish crossovers in the last few weeks. Box, Inc. (BOX), Dropbox, Inc. (DBX), and Twilio (TWLO) all three showed up on that search.
Once I saw the stocks on the search, I pulled them up on Tickeron’s Fundamental Analysis screener and found that Twilio was rated as a “strong sell”. Box and Dropbox both have “sell” ratings.
Looking at the fundamental indicators, Twilio has zero positive signals and five negative readings. Dropbox and Box both have one positive signal and four negative ones. For Dropbox, its SMR rating is the only one that is positive. For Box, the seasonality score is positive, but even that isn’t a real strong reading.
There are three areas where all three stocks get poor ratings. All three have really bad scores in the P/E Growth ratings and bad scores on their Profit vs. Risk and Outlook Ratings. Twilio and Dropbox both get 100 on the Profit vs. Risk rating and that is the worst score a stock can get.
Looking at their charts, the trend on Box stood out to me. The stock has been trending lower since peaking in 2018. A trend channel has formed that defines the various cycles within the overall downward trend and the stock hit the upper rail a few weeks ago. We also see how the stochastic indicators made a bearish crossover this week.
The complete analysis from Tickeron appears below. It shows how the stocks compare to one another and how they stack up against other companies.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
BOX sees its Stochastic Oscillator recovers from oversold territory
On November 11, 2026, the Stochastic Oscillator for BOX moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 63 instances where the indicator left the oversold zone. In 44 of the 63 cases the stock moved higher in the following days. This puts the odds of a move higher at over 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 10, 2026. You may want to consider a long position or call options on BOX as a result. In 54 of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 68%.
Following a +2.54% 3-day Advance, the price is estimated to grow further. Considering data from situations where BOX advanced for three days, in 199 of 302 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
The Aroon Indicator entered an Uptrend today. In 128 of 224 cases where BOX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Bearish Trend Analysis
The 10-day RSI Indicator for BOX moved out of overbought territory on November 06, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In 18 of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at 64%.
The Moving Average Convergence Divergence Histogram (MACD) for BOX turned negative on November 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 33 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BOX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
BOX broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 4 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 30 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. BOX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 43 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock slightly better than average.
The Tickeron Valuation Rating of 47 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-16.391) is normal, around the industry mean (16.275). P/E Ratio (59.929) is within average values for comparable stocks, (45.369). Projected Growth (PEG Ratio) (0.609) is also within normal values, averaging (3.696). Dividend Yield (0.000) settles around the average of (0.430) among similar stocks. P/S Ratio (4.042) is also within normal values, averaging (103.897).
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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