Top 5 Materials Stocks That That May Collapse In Q1 2023


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.


  • Redburn Partners recently upgraded the stock from Neutral to Buy. The company’s stock has a 52-week high of $52.03 .
  • RSI Value: 81.56
  • CRH Price Action: Shares of CRH jumped 9.2% to close at $51.82 on Thursday.

O-I Glass, Inc. OI

  • O-I Glass reported better-than-expected Q4 results and issued Q1 and FY23 adjusted EPS guidance above estimates. “We are pleased with O-I’s full-year 2022 performance as earnings improved from the prior year reflecting strong net price realization, continued sales volume growth and favorable operating performance,” said Andres Lopez, O-I Glass CEO. The company’s stock has a 52-week high of $23.52.
  • RSI Value: 80.50
  • OI Price Action: Shares of O-I Glass gained 4.3% to close at $23.25 on Thursday.

The Mosaic Company MOS

  • Mosaic reported better-than-expected Q4 sales results. The company has a 52-week high of $79.28.
  • RSI Value: 81.73
  • MOS Price Action: Shares of Mosaic gained 5.1% to close at $57.00 on Thursday.

Cleveland-Cliffs Inc. CLF

  • Cleveland-Cliffs reported worse-than-expected Q4 sales results. Lourenco Goncalves, Cliffs' Chairman, President and CEO said, "In the fourth quarter of 2022 we generated healthy free cash flow of $262 million. We also achieved our targeted unit cost reduction of $80 per net ton, which helped us to partially offset the impact of lagged index pricing." The company’s 52-week high is $34.04.
  • RSI Value: 71.95
  • CLF Price Action: Shares of Cleveland-Cliffs gained 3.7% to close at $22.22 on Thursday.

Reliance Steel & Aluminum Co. RS

  • Reliance Steel & Aluminum posted upbeat quarterly earnings. “We’re very pleased to have achieved record financial performance in 2022 across nearly every metric during a period of continued metal price volatility and broader economic uncertainty,” said Karla Lewis, President and Chief Executive Officer of Reliance. The company has a 52-week high of $260.19.
  • RSI Value: 80.40
  • RS Price Action: Shares of Reliance Steel & Aluminum gained 2.9% to settle at $260.17 on Thursday.

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