Top 2 Materials Stocks That May Implode This Quarter

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

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.

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

Alpha Metallurgical Resources, Inc. (NYSE: AMR)

• Alpha Metallurgical reported better-than-expected second-quarter earnings. "Our team successfully navigated some challenges in the quarter, as we announced in late June," said Andy Eidson, Alpha's chief executive officer. The company’s stock has a 52-week high of $251.51. .
• RSI Value: 74.55
• AMR Price Action: Shares of Alpha Metallurgical Resources rose 0.4% to close at $245.26 on Tuesday.

ZK International Group Co., Ltd. (NASDAQ: ZKIN)

• ZK International Group shares surged more than 40% over the past month. The company’s stock has a 52-week high of $1.34.
• RSI Value: 70.05
• ZKIN Price Action: Shares of ZK International Group fell 1.4% to close at $0.73 on Tuesday.

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