Top 2 Materials Stocks That May Collapse This Quarter


As of June 14, 2024, two 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.

Element Solutions Inc ESI

  • On June 11, Element Solutions increased its second-quarter and FY24 guidance. President and CEO Benjamin Gliklich said, “The strength in our electronics business and improvement in our overall profitability have continued and, in certain areas, accelerated in the second quarter. Our wafer level packaging and circuitry businesses, in particular, have ramped to support strong customer growth these past two months. While electronic markets are recovering in certain pockets, overall unit and chemistry volumes remain below long-term trend levels. Nonetheless, and despite what is a generally weaker industrial environment, we expect in 2024 to generate record adjusted EBITDA since the founding of Element Solutions in 2019.” The company's stock gained around 14% over the past five days and has a 52-week high of $27.08.
  • RSI Value: 72.19                              
  • ESI Price Action: Shares of Element Solutions fell 0.7% to close at $26.75 on Thursday.

Air Products and Chemicals Inc APD

  • On June 7, Air Products and Chemicals inked a 15-year agreement with TotalEnergies SE TTE to supply 70,000 tons of green hydrogen annually in Europe, starting in 2030. Air Products' Chairman, President and CEO Seifi Ghasemi commented, "We always believed that if we made clean hydrogen available at commercial scale, the demand would be there. This contract validates our long-term strategy. Clearly the demand is here, and it will grow significantly as we move forward, playing an essential role in decarbonizing heavy industry and other sectors." The company's stock gained around 15% over the past month and has a 52-week high of $307.71.
  • RSI Value: 79.70
  • APD Price Action: Shares of Air Products and Chemicals rose 0.8% to close at $285.31 on Thursday.

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