As of Feb. 21, 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.

PureCycle Technologies, Inc. (NASDAQ:PCT)

• On Jan. 16, PureCycle provided an update for its Ironton production facility and said in the last two weeks, it produced 183,000 pounds of pellets. The company's stock gained around 32% over the past five days and has a 52-week high of $11.89 .
• RSI Value: 70.28
• PCT Price Action: Shares of PureCycle Technologies gained 4.3% to close at $5.89 on Tuesday.

IperionX Limited (NASDAQ:IPX)

• IperionX is on course to commercially scale its titanium metal production. With its HAMR titanium furnace ready for U.S. installation in early 2024 and aiming to start production by mid-year, IperionX has made significant strides in its titanium production capabilities. The company's stock gained around 38% over the past month and has a 52-week high of $18.57
• RSI Value: 72.51
• IPX Price Action: Shares of IperionX fell 3.2% to close at $14.62 on Tuesday.

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