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.

Brown & Brown, Inc. (NYSE:BRO)

Gold Fields Limited (NYSE:GFI)

• Gold Fields reported a rise in FY adjusted EPS. The company’s stock has a 52-week high of $15.88.
• RSI Value: 71.02
• GFI Price Action: Shares of Gold Fields rose 0.5% to close at $15.56 on Friday.

NewMarket Corporation (NYSE:NEU)

• NewMarket reported a year-over-year increase in Q1 EPS and sales. The company has a 52-week high of $400.91.
• RSI Value: 78.23
• NEU Price Action: Shares of NewMarket rose 1% to close at $399.60 on Friday.

Glatfelter Corporation (NYSE:GLT)

• Glatfelter named Boris Illetschko as Senior Vice President, Chief Operating Officer. The company’s 52-week high is $11.19.
• RSI Value: 77.18
• GLT Price Action: Shares of Glatfelter rose 2.5% to close at $4.52 on Friday.

Snow Lake Resources Ltd. (NASDAQ:LITM)

• Snow Lake recently regained compliance with NASDAQ continued listing requirements. The company has a 52-week high of $4.89.
• RSI Value: 71.55
• LITM Price Action: Shares of Snow Lake Resources rose 4.3% to settle at $2.41 on Friday.

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