Top 4 Materials Stocks That May Implode In Q3

As of Sept. 27, 2024, four 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.

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

Freeport-McMoRan Inc FCX

• On Sept. 25, Freeport said its Board of Directors declared cash dividends of 15 cents per share on FCX’s common stock payable on Nov. 1, to shareholders of record as of Oct. 15. The company's stock gained around 17% over the past five days and has a 52-week high of $55.24.
• RSI Value: 76.95                              
• FCX Price Action: Shares of Freeport-McMoRan gained 7.5% to close at $51.91 on Thursday.

Mp Materials Corp MP

• On Sept. 3, MP Materials approved a $300 million increase to the company’s existing share repurchase program, bringing the total authorized amount to $600 million. “We remain very confident in the long-term value of our assets and the MP platform,” said James Litinsky, Founder, Chairman, and CEO of MP Materials. “As we have consistently stated, subject to continuing to maintain a fortress balance sheet, we expect to be opportunistic in our approach to capital allocation to create value for shareholders.”The company's stock gained around 20% over the past five days and has a 52-week high of $20.85.
• RSI Value: 78.23
• MP Price Action: Shares of Mp Materials rose 4.6% to close at $16.90 on Thursday.

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ArcelorMittal SA MT

• On Aug. 28, Deutsche Bank analyst Bastian Synagowitz upgraded ArcelorMittal from Hold to Buy and raised the price target from $29 to $31. The company's stock gained around 10% over the past month and has a 52-week high of $29.01.
• RSI Value: 72.57
• MT Price Action: Shares of ArcelorMittal gained 5.1% to close at $25.93 on Thursday.

Southern Copper Corp SCCO

• On Sept. 19, Morgan Stanley analyst Carlos De Alba maintained Southern Copper with an Underweight and raised the price target from $97 to $100. The company's stock jumped around 15% over the past five days and has a 52-week high is $129.07.
• RSI Value: 73.34
• SCCO Price Action: Shares of Southern Copper gained 8.2% to close at $120.43 on Wednesday.

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