A 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.
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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's RSI Indicator leaves overbought zone
The 10-day RSI Indicator for BOX moved out of overbought territory on August 11, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 instances where the indicator moved out of the overbought zone. In of the 25 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 58 cases where BOX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on August 21, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BOX as a result. In of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BOX turned negative on August 14, 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 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The 50-day moving average for BOX moved above the 200-day moving average on July 29, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BOX advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 223 cases where BOX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (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 Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (0.000) is normal, around the industry mean (22.357). P/E Ratio (52.297) is within average values for comparable stocks, (70.413). Projected Growth (PEG Ratio) (0.677) is also within normal values, averaging (2.162). BOX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (4.070) is also within normal values, averaging (109.528).
The Tickeron Price Growth Rating for this company is (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 (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 SMR rating for this company is (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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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a platform for content storage, sharing, and collaboration
Industry ComputerCommunications
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