As of Jan. 11, 2024, selected stocks in the materials sector might be waving a caution signal to investors who prioritize momentum in their trading decisions.
The RSI indicator, a measure of momentum, could give traders insight into short-term stock performance based on price action. When the RSI exceeds 70, the asset is often viewed as overbought (Benzinga Pro).
Here’s a closer look at some major overbought players in this sector.
Pactiv Evergreen Inc. PTVE
- Following upbeat quarterly earnings on Nov. 1, Pactiv Evergreen’s stock surged approximately 15% over the past month and reached a high of $14.85.
- RSI Value: 74.07
- PTVE Price Action: Pactiv Evergreen’s shares closed at $14.25 on Wednesday, down 1.7%.
Ascent Industries Co. ACNT
- On Dec. 26, 2023, Ascent Industries reported the sale of Specialty Pipe & Tube for about $55 million. The company’s stock gained approximately 27% over the past month and reached a 52-week high of $11.56.
- RSI Value: 71.02
- ACNT Price Action: Ascent Industries’ shares closed at $9.81 on Wednesday, showing a 0.4% decrease.
United States Steel Corporation X
- On Dec. 18, Nippon Steel announced the acquisition of United States Steel for $55 per share. The company’s stock surged approximately 34% over the past month and reached a 52-week high of $50.20.
- RSI Value: 77.00
- X Price Action: United States Steel’s shares closed at $48.28 on Wednesday, down 0.3%.
Smith-Midland Corporation SMID
- On Dec. 12, Smith-Midland secured a $3.8 million J-J Hooks Barrier Rental contract for I-64 in Virginia. The company’s stock grew around 10% over the past month and reached a 52-week high of $42.50.
- RSI Value: 73.70
- SMID Price Action: Smith-Midland’s shares closed at $40.20 on Wednesday, showing a 1.3% increase.
Rayonier Advanced Materials Inc. RYAM
- Following downbeat quarterly results on Nov. 7, RYAM’s stock surged approximately 23% over the past month and reached a 52-week high of $8.65.
- RSI Value: 71.00
- RYAM Price Action: Rayonier Advanced Materials’ shares closed at $4.26 on Wednesday, showing a 0.2% increase.
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