As of May 14, 2024, three 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.

Universal Stainless & Alloy Products, Inc.. (NASDAQ:USAP)

• On May 1, Universal Stainless & Alloy Products reported better-than-expected first-quarter GAAP EPS results. Christopher M. Zimmer, President and CEO, said, “We achieved the highest profitability in 12 years in the first quarter, including a gross margin of 18.9%, on near-record sales. Our performance was driven by robust aerospace demand and the continued realization of base price increases implemented over the past three years.” The company's stock gained around 29% over the past month and has a 52-week high of $33.79.
• RSI Value: 72.25                              
• USAP Price Action: Shares of Universal Stainless & Alloy Products fell 0.6% to close at $32.26 on Monday.

Intrepid Potash, Inc. (NYSE:IPI)

• On May 8, Interpid Potash reported better-than-expected first-quarter sales results. Matt Preston, Intrepid’s Chief Financial Officer and acting principal executive officer said, “Intrepid started the year with a solid first quarter that was highlighted by robust demand and stable pricing in the potash market. Our quarterly Trio® sales volumes of 91 thousand tons exceeded expectations as consistent potash pricing and improving sulfate values drove strong in-season demand.” The company's stock gained around 20% over the past five days and has a 52-week high of $28.30.
• RSI Value: 76.02
• IPI Price Action: Shares of Intrepid Potash rose 3.4% to close at $25.53 on Monday.

Aspen Aerogels, Inc. (NYSE:ASPN)

• On May 1, Aspen Aerogels reported better-than-expected first-quarter financial results. “We continue to execute the transition of our Energy Industrial products to our external manufacturing facility and dedicate our manufacturing plant in East Providence to the production of aerogel for EV thermal barriers. We believe the Q1 results further demonstrate that we have the capability with existing assets and supply arrangements to deliver $650 million of annual revenue with at least 35% gross margins and 25% Adjusted EBITDA margins,” commented Don Young, Aspen’s President and CEO. The company's stock gained around 79% over the past month and has a 52-week high of $27.46.
• RSI Value: 82.20
• ASPN Price Action: Shares of Aspen Aerogels rose 1.2% to close at $27.33 on Monday.

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