Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of March 19, 2024, 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.
United States Lime & Minerals, Inc. (NASDAQ: USLM)
- On Feb. 2, United States Lime & Minerals posted an increase in quarterly EPS. “While we are pleased with our financial performance in the fourth quarter and full year 2023, reduced demand in the fourth quarter from our industrial and construction customers continued to generate headwinds for us. Increased demand from our roofing and oil and gas customers was an encouraging offset to overall decreases in volume,” said Timothy W. Byrne, President and Chief Executive Officer. The company’s stock gained around 16% over the past month and has a 52-week high of $298.36 .
- RSI Value: 70.69
- USLM Price Action: Shares of United States Lime & Minerals fell 0.9% to close at $288.78 on Monday.
- On March 12, Arq reported better-than-expected fourth-quarter financial results. "We capped off 2023 with strong momentum and are very pleased with the steps we have taken and continue to take to further improve our foundational PAC business," said Robert Rasmus, CEO of Arq. The company’s stock gained around 56% over the past five days and has a 52-week high of $5.98.
- RSI Value: 81.34
- ARQ Price Action: Shares of Arq gained 2.7% to close at $5.81 on Monday.
- On Feb. 7, Freeport-McMoRan said it appointed Kathleen L. Quirk as President and Chief Executive Officer, effective June 11, 2024. The company’s stock gained around 9% over the past five days has a 52-week high of $45.47.
- RSI Value: 70.47
- FCX Price Action: Shares of Freeport-McMoRan fell 0.3% to close at $44.48 on Friday.
- The company’s stock jumped around 18% over the past five days and has a 52-week high is $104.83.
- RSI Value: 75.93
- SCCO Price Action: Shares of Southern Copper fell 0.4% to close at $102.60 on Monday.
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