The most overbought stocks in the materials sector offer an opportunity to short on these overvalued companies.

The RSI is a momentum indicator that compares a stock’s strength on rising days to its strength on falling days. Compared to a stock’s price action, it can give traders a better sense of how a stock might perform in the short term. An asset is typically considered overbought when the The RSI is above 70.

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

DRDGOLD Limited DRD

• DRDGOLD shares are up around 20% over the past month. The company’s stock has a 52-week high of $11.05 .
• RSI value: 70.79
• DRD Price Action: Shares of DRDGOLD fell 3.6% to close at $10.49 on Wednesday.

Diversey Holdings, Ltd. DSEY

• Diversey Holdings reported weaker than expected Q4 results. The companys The stock has a 52-week high from $10.68.
• RSI value: 70.00
• DSEY Price Promotion: Diversey Holdings shares gained 0.1% to close at $8.15 on Wednesday.

Core Molding Technologies, Inc. CMT

• Core Molding Technologies reported better than expected Q4 results. David Duvall, the Company’s President and Chief Executive Officer, said, “2022 was a record year for revenue, net income and Adjusted EBITDA for the Company as we reported total revenue of $377 million, net income of $12.2 million and reported Adjusted EBITDA of $31.9 million.” The company has a 52 week high from $19.68.
• RSI value: 70.82
• CMT Price Action: Core Molding Technologies shares fell 0.4% to close at $19.22 on Wednesday.

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