Top 4 Materials Stocks That May Collapse

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.

AngloGold Ashanti Limited AU

• The company’s stocks jumped 33% over the past month. The company’s stock has a 52-week high of $24.97 .
• RSI Value: 75.79
• AU Price Action: Shares of AngloGold Ashanti gained 2.4% to close at $22.26 on Friday.

Gold Fields Limited GFI

• Gold Fields and AngloGold Ashanti agreed on key terms of proposed JV in Ghana. The company’s stock has a 52-week high of $16.92.
• RSI Value: 76.73
• GFI Price Action: Shares of Gold Fields gained 3.1% to close at $12.80 on Friday.

DRDGOLD Limited DRD

• HC Wainwright & Co., last month, maintained DRDGold with a Buy and lowered the price target from $15.25 to $15. The company has a 52-week high of $10.02.
• RSI Value: 71.68
• DRD Price Action: Shares of DRDGOLD rose 0.4% to close at $9.17 on Friday.

Diversey Holdings, Ltd. DSEY

• Diversey Holdings posted downbeat quarterly earnings. The company’s 52-week high is $10.68.
• RSI Value: 72.41
• DSEY Price Action: Shares of Diversey Holdings fell 0.1% to close at $8.03 on Friday.

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