As of July 29, 2024, five stocks in the financials 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.

Columbia Banking System Inc (NASDAQ:COLB)

• On July 25, Columbia Banking System reported better-than-expected second-quarter earnings results. “Our second quarter results reflect continued progress on our targeted actions to improve our financial performance and drive shareholder value,” said Clint Stein, President and CEO. The company's stock gained around 36% over the past month and has a 52-week high of $27.94.
• RSI Value: 86.63                              
• COLB Price Action: Shares of Columbia Banking System gained 11.6% to close at $26.99 on Friday.

Hartford Financial Services Group Inc (NYSE:HIG)

• On July 25, Hartford Financial reported better-than-expected second-quarter earnings results. “The Hartford’s second quarter 2024 financial results were outstanding with a trailing 12-month core earnings ROE of 17.4 percent,” said The Hartford’s Chairman and CEO Christopher Swift. The company's stock gained around 8% over the past five days and has a 52-week high of $109.68.
• RSI Value: 79.84
• HIG Price Action: Shares of Hartford Financial gained 7.1% to close at $109.63 on Friday.

KeyCorp (NYSE:KEY)

• On July 18, KeyCorp posted better-than-expected quarterly sales. Chairman and CEO, Chris Gorman said, “This was a solid quarter for Key as we continued to execute on our clearly defined path to enhanced profitability. Sequentially, net interest income grew as we benefited from fixed asset repricing and continued to grow client deposits while the pace of deposit repricing slowed.” The company's stock gained around 16% over the past month and has a 52-week high of $16.47.
• RSI Value: 70.06
• KEY Price Action: Shares of KeyCorp gained 2.1% to close at $16.46 on Friday.