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.
Gold Fields Limited (NYSE:GFI)
- Gold Field reported a rise in FY sales results. The company's stock has a 52-week high of $16.92 .
- RSI Value: 71.21
- GFI Price Action: Shares of Gold Fields gained 2.7% to trade at $11.86 on Monday.
DRDGOLD Limited (NYSE:DRD)
- HC Wainwright & Co, last month, maintained DRDGold with a Buy and lowered the price target from $15.25 to $15. The company's stock has a 52-week high of $10.19.
- RSI Value: 71.21
- DRD Price Action: Shares of DRDGOLD rose 5.3% to trade at $8.79 on Monday.
AngloGold Ashanti Limited (NYSE:AU)
- The company's stock gained around 17% over the past month. The company has a 52-week high of $25.27.
- RSI Value: 71.44
- AU Price Action: Shares of AngloGold Ashanti gained 3.5% to trade at $21.35 on Monday.
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