As of Aug 29, 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

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Here's the latest list of major overbought players in this sector.

Eightco Holdings Inc (NASDAQ:OCTO)

On Aug. 15, Eightco Holdings posted second-quarter earnings of 43 cents per share. Paul Vassilakos, CEO of Eightco and President of Forever 8 Fund, LLC ("Forever 8"), the Company's largest subsidiary, said "The Company continues to focus on prioritizing the Forever 8 business in providing inventory capital for e-commerce sellers and refurbished apple product sellers. The Company has made significant progress in the first half of 2024 improving its financial condition, most notably through the elimination of $5.4 million in convertible notes and thus increasing shareholder equity." The company's stock gained around 5% over the past five days and has a 52-week high of $4.75 .

RSI Value: 83.86

OCTO Price Action: Shares of Eightco Holdings fell 2.4% to close at $1.84 on Wednesday.

Sherwin-Williams Co (NYSE:SHW)

On July 23, Sherwin-Williams Company reported second-quarter FY24 results. Adjusted earnings per share of $3.70, beating the Wall Street view of $3.48. President and Chief Executive Officer Heidi G. Petz said, "Led by strong performance in the Paint Stores Group, we continued to execute on our proven strategy across the Company to deliver consolidated sales within our expectations, gross margin expansion, EBITDA growth, and a 12.5% percent increase in adjusted diluted net income per share." The company's stock gained around 3% over the past month and has a 52-week high of $363.12.

RSI Value: 70.33

SHW Price Action: Shares of Sherwin-Williams gained 0.5% to close at $361.70 on Wednesday.