Top 5 Materials Stocks That May Implode In April

As of April 3, 2024, five 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.

Arq, Inc. ARQ

• On March 12, Arq reported better-than-expected fourth-quarter financial results. "We capped off 2023 with strong momentum and are very pleased with the steps we have taken and continue to take to further improve our foundational PAC business," said Robert Rasmus, CEO of Arq. The company’s stock gained around 99% over the past month and has a 52-week high of $7.26 .
• RSI Value: 80.19
• ARQ Price Action: Shares of Arq gained 7.8% to close at $7.04 on Tuesday.

Alcoa Corporation AA

• On March 11, Alcoa inked a binding Scheme Implementation Deed to acquire Alumina Limited in an all-scrip, or all-stock, transaction. William F. Oplinger, Alcoa’s President and CEO, said, “Entering into the Scheme Implementation Deed to acquire Alumina Limited is a milestone on our path to deliver value for both Alcoa and Alumina shareholders.” The company’s stock gained around 30% over the past month and has a 52-week high of $42.23.
• RSI Value: 77.99
• AA Price Action: Shares of Alcoa gained 4.8% to close at $35.64 on Tuesday.

Harmony Gold Mining Company Limited HMY

• On Jan. 25, Harmony Gold Mining announced that it remains on track to meet the higher end of its full-year production guidance. The company’s stock gained around 24% over the past month and has a 52-week high of $8.61.
• RSI Value: 76.73
• HMY Price Action: Shares of Harmony Gold Mining gained 4% to close at $8.41 on Tuesday.

Tredegar Corporation TG

• On March 15, Tredegar posted a loss for the fourth quarter. John Steitz, Tredegar’s president and chief executive officer, said, "Results for the fourth quarter were better than expected and improved compared with the third quarter of 2023. There are signs that the downturn at Bonnell, which we believe is a residual impact of the pandemic and started in the second half of 2022, has hit bottom and that a recovery is underway." The company’s stock jumped around 57% over the past month and has a 52-week high is $9.53.
• RSI Value: 78.03
• TG Price Action: Shares of Tredegar gained 2.7% to close at $6.55 on Tuesday.

Kaiser Aluminum Corporation KALU

• On Feb. 21, Kaiser Aluminum posted better-than-expected quarterly sales. The company’s stock jumped around 28% over the past month and has a 52-week high of $91.47.
• RSI Value: 83.34
• KALU Price Action: Shares of Kaiser Aluminum climbed 2.5% to close at $90.89 on Tuesday.

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