Benzinga - by Lisa Levin, Benzinga Editor.
The most overbought stocks in the materials sector presents an opportunity to go short on these overvalued companies.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.
Here’s the latest list of major overbought players in this sector.
IperionX Limited (NASDAQ: IPX)
- IperionX executed a Test Services Agreement and Statement of Work with the U.S. Army Combat Capabilities Development Command Ground Vehicle Systems Center. The company’s stock has a 52-week high of $18.57. .
- RSI Value: 71.89
- IPX Price Action: Shares of IperionX gained 2.3% to close at $8.75 on Friday.
- Alpha Metallurgical reported better-than-expected earnings. "Our team successfully navigated some challenges in the quarter, as we announced in late June," said Andy Eidson, Alpha's chief executive officer. The company’s stock has a 52-week high of $222.34.
- RSI Value: 75.50
- AMR Price Action: Shares of Alpha Metallurgical Resources fell 0.6% to close at $218.05 on Friday.
- The company has a market capitalization of $782.416 million. The company has a 52-week high of $36.64.
- RSI Value: 81.46
- RDUS Price Action: Shares of Schnitzer Steel Industries fell 4.3% to close at $28.44 on Friday.
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