Top 3 Materials Stocks That May Collapse In Q3

As of Aug 19, 2024, three 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.

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

Aspen Aerogels Inc ASPN

On Aug. 7, Aspen Aerogels reported better-than-expected second-quarter revenue results. “This quarter’s results demonstrate the significant operating leverage of our business model as we continue to utilize a higher percentage of our current capacity and effectively execute our strategy,” commented Don Young, Aspen’s President and CEO. The company's stock gained around 35% over the past five days and has a 52-week high of $31.74.
RSI Value: 73.40
ASPN Price Action: Shares of Aspen Aerogels gained 22.6% to close at $29.92 on Friday.

Anglogold Ashanti PLC AU

On Aug. 6, AngloGold Ashanti reported a year-over-year increase in H1 financial results. “These results show the hard work that’s been done to improve the fundamentals of our business, to drive productivity benefits and manage costs to ensure we capture the benefit of stronger gold prices,” CEO Alberto Calderon said. “We expect to deliver an even stronger second-half performance.” The company's stock gained around 12% over the past month and has a 52-week high of $31.65.
RSI Value: 70.53
AU Price Action: Shares of Anglogold Ashanti gained 3.6% to close at $31.47 on Friday.

United States Antimony Corporation UAMY

On Aug. 9, the company said revenues for the first six months of 2024 increased 26%, or $1.169 million, to $5.6 million, compared to the first six months of 2023. The company's stock gained around 71% over the past month and has a 52-week high of $0.57.
RSI Value: 84.97
UAMY Price Action: Shares of United States Antimony gained 11.6% to close at $0.53 on Friday.