As of April 17, 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.
Southern Copper Corporation (NYSE:SCCO)
- On March 22, Jefferies analyst Alejandro Demichelis upgraded Southern Copper from Hold to Buy and raised the price target from $91 to $130. The company’s stock gained around 11% over the past month and has a 52-week high of $120.37 .
- RSI Value: 70.11
- SCCO Price Action: Shares of Southern Copper fell 0.2% to close at $113.83 on Tuesday.
Northern Technologies International Corporation (NASDAQ:NTIC)
- On April 11, Northern Technologies International reported better-than-expected second-quarter adjusted EPS results. "NTIC set a series of new records in the second quarter, driven by robust demand across many parts of our business. Most notable among these were record second quarter ZERUST® oil and gas sales and record quarterly Natur-Tec® sales. The positive momentum underway within these two sectors reflects our long-standing commitment to developing innovative solutions for large, rapidly growing markets that are supported by NTIC's global infrastructure," said G. Patrick Lynch, President and CEO of NTIC. The company’s stock gained around 23% over the past five days and has a 52-week high of $15.96.
- RSI Value: 70.85
- NTIC Price Action: Shares of Northern Technologies International gained 0.1% to close at $14.89 on Tuesday.
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