Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Dec. 26, 2023, four 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.
Alcoa Corporation (NYSE: AA)
- On Dec. 21, Alcoa named Matt Reed as EVP and Chief Operations Officer, effective Jan. 1, 2024. The company’s stock jumped around 28% over the past month and has a 52-week high of $57.61 .
- RSI Value: 73.85
- AA Price Action: Shares of Alcoa gained 5.5% to close at $33.77 on Friday.
- On Nov. 2, Glatfelter reported a decline in third-quarter sales. The company’s stock gained around 37% over the past month and has a 52-week high of $4.87.
- RSI Value: 72.98
- GLT Price Action: Shares of Glatfelter gained 6.3% to close at $1.87 on Friday.
- On Dec. 20, Aspen Aerogels reported a $75 million registered direct offering of 6,060,607 shares of common stock at an offering price of $12.375 per share. The company’s stock jumped around 42% over the past month and has a 52-week high of $15.52.
- RSI Value: 77.89
- ASPN Price Action: Shares of Aspen Aerogels gained 4% to close at $15.38 on Friday.
- On Nov. 1, Ingevity posted in-line earnings for its third quarter. The company’s stock gained around 24% over the past month and has a 52-week high is $90.81.
- RSI Value: 71.49
- NGVT Price Action: Shares of Ingevity gained 3.3% to close at $47.82 on Friday.
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