The most overbought stocks in the materials sector presents an opportunity to go short on these overvalued companies.
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.
Here’s the latest list of major overbought players in this sector.
DRDGOLD Limited DRD
- DRDGOLD shares jumped around 20% over the past month. The company’s stock has a 52-week high of $11.05 .
- RSI Value: 70.79
- DRD Price Action: Shares of DRDGOLD fell 3.6% to close at $10.49 on Wednesday.
Diversey Holdings, Ltd. DSEY
- Diversey Holdings posted weaker-than-expected Q4 earnings. The company’s stock has a 52-week high of $10.68.
- RSI Value: 70.00
- DSEY Price Action: Shares of Diversey Holdings gained 0.1% to close at $8.15 on Wednesday.
Core Molding Technologies, Inc. CMT
- Core Molding Technologies posted better-than-expected Q4 results. David Duvall, the Company’s President and Chief Executive Officer, said, “2022 was a record sales, net income and adjusted EBITDA year for the Company, as we achieved total sales of $377 million, net income of $12.2 million and Adjusted EBITDA of $31.9 million.” The company has a 52-week high of $19.68.
- RSI Value: 70.82
- CMT Price Action: Shares of Core Molding Technologies fell 0.4% to close at $19.22 on Wednesday.