As of Dec. 31, 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.

IT Tech Packaging Inc (NYSE:ITP)

• On Nov. 15, IT Tech Packaging reported a loss of 20 cents per share for the third quarter, unchanged from the year-ago period.. The company's stock surged around 32% over the past five days and has a 52-week high of $0.37.
• RSI Value: 77.5
• ITP Price Action: Shares of IT Tech Packaging jumped 7.4% close at $0.29 on Monday.

Tantech Holdings Ltd (NASDAQ:TANH)

• On Dec. 27, Tantech Holdings announced the company's subsidiary, Gohomeway Group, signed an annual purchase agreement with Heidi Enterprise Group for the period of January 2025 to December 2025. Tantech's CEO, Wangfeng Yan, stated, "The substantial progress achieved in our construction materials sales in the U.S. reflects our commitment to market growth. We will continue to strengthen our efforts to expand operations in the U.S., aiming to establish a robust market ecosystem that is planned to include a comprehensive distribution network and franchise system through the operations of Gohomeway Group Inc." The company's stock gained around 49% over the past five days and has a 52-week high of $1.59.
• RSI Value: 71.7
• TANH Price Action: Shares of Tantech Holdings gained 21.1% to close at $0.23 on Monday.

5E Advanced Materials Inc (NASDAQ:FEAM)

• On Nov. 21, 5E Advanced Materials announced a year-over-year increase in first-quarter EPS results. "Over the last three months, 5E has made significant progress across the most critical elements of our strategy and go-forward plan as we advance our 5E Boron Americas project (the "Project") towards commercial scale production," said Paul Weibel, Chief Executive Officer of 5E Advanced Materials The company's stock gained around 100% over the past five days and has a 52-week high of $2.48.
• RSI Value: 73.1
• FEAM Price Action: Shares of 5E Advanced Materials jumped 51.5% to close at $1.00 on Monday.

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