As of Nov. 14, 2024, three stocks in the materials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
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, according to Benzinga Pro.
Here's the latest list of major overbought players in this sector.
United States Lime & Minerals Inc (NASDAQ:USLM)
- On Oct. 30, United States Lime reported quarterly earnings of $1.16 per share, up from 73 cents per share in the year-ago period. "While our overall construction demand is down for the year-to-date, we did see improved demand from our construction customers in the third quarter 2024 as weather conditions in the South-Central United States returned to a more normal pattern compared to the heavier than usual rainfalls that we experienced in the first half 2024," said Timothy W. Byrne, President and Chief Executive Officer. The company's stock gained around 41% over the past month and has a 52-week high of $146.70.
- RSI Value: 83.20
- USLM Price Action: Shares of United States Lime & Minerals gained 3.5% to close at $142.58 on Wednesday.
ASP Isotopes Inc (NASDAQ:ASPI)
- On Nov. 4, ASP Isotopes announced the closing of public offering and full exercise of underwriter's option to purchase additional shares. The company's stock gained around 175% over the past month and has a 52-week high of $9.32.
- RSI Value: 72.87
- ASPI Price Action: Shares of ASP Isotopes gained 4.5% to close at $8.33 on Wednesday.
Axalta Coating Systems Ltd (NYSE:AXTA)
- On Oct. 30, Axalta Coating Systems reported better-than-expected third-quarter adjusted EPS results and raised its FY24 adjusted EPS guidance. The company's stock gained around 10% over the past month and has a 52-week high of $40.76.
- RSI Value: 76.04
- AXTA Price Action: Shares of Axalta Coating gained 2.5% to close at $40.60 on Wednesday.
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