Top 3 Materials Stocks You May Want To Dump This Month

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.

Ramaco Resources, Inc. METC

• Ramaco Resources updated its third-quarter guidance. The company said it now expects adjusted third-quarter earnings to be between 42 cents and 45 cents per share, representing a potential increase of 160% at the high end compared to the second quarter. Ramaco will report third-quarter earnings after the market close on Nov. 7. The company’s stock has a 52-week high of $12.81. .
• RSI Value: 76.01
• METC Price Action: Shares of Ramaco Resources fell 1.1% to close at $12.42 on Wednesday.

Gold Fields Limited GFI

• JP Morgan recently upgraded the stock from Underweight to Neutral and announced a $14 price target. The company’s stock has a 52-week high of $17.78.
• RSI Value: 72.24
• GFI Price Action: Shares of Gold Fields fell 0.8% to close at $14.22 on Wednesday.

Golden Minerals Company AUMN

• The company’s stock jumped around 100% over the past month. The company has a 52-week high of $8.00.
• RSI Value: 83.38
• AUMN Price Action: Shares of Golden Minerals jumped 47.2% to close at $1.36 on Wednesday.

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