As of Aug 2, 2024, two 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.
Newmont Corporation (NYSE:NEM)
- On July 24, Newmont posted better-than-expected quarterly results. "Newmont delivered a solid second quarter, producing 2.1 million gold equivalent ounces and generating $594 million in free cash flow," said Tom Palmer, Newmont's President and Chief Executive Officer. The company's stock gained around 19% over the past month and has a 52-week high of $50.14.
- RSI Value: 70.76
- NEM Price Action: Shares of Newmont gained 1% to close at $49.55 on Thursday.
Universal Stainless & Alloy Products Inc (NASDAQ:USAP)
- On July 31, Universal Stainless & Alloy Products reported better-than-expected second-quarter financial results. Christopher M. Zimmer, President and CEO, commented, "Our record sales were driven by the continued robust commercial aerospace and defense markets, with our record aerospace sales representing 82.9% of sales in the quarter. Aerospace demand also drives our premium alloy sales, which now represent one-quarter of our total sales." The company's stock gained around 43% over the past month and has a 52-week high of $40.92.
- RSI Value: 79.93
- USAP Price Action: Shares of Universal Stainless gained 7.8% to close at $40.44 on Thursday.
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