These materials stocks flash overbought signals as earnings season picks up

Materials stocks are drawing investor attention as the second-quarter earnings season gathers momentum this week, with traders assessing whether recent gains have left some names vulnerable to profit-taking.

Several companies across the sector are now trading with elevated Relative Strength Index readings, reflecting strong upward price momentum ahead of earnings reports and management guidance.

Leading the list is Crown Holdings, Inc. (CCK) with an RSI of 69. CF Industries Holdings, Inc. (CF) and Corteva, Inc. (CTVA) follow with RSI readings of 65 and 64, respectively, while Greif, Inc. (GEF) and Ashland Inc. (ASH) round out the top five with RSIs of 63 and 62.

Other notable names include Ball Corporation (BALL), Innospec Inc. (IOSP), Silgan Holdings Inc. (SLGN), LyondellBasell Industries N.V. (LYB), Southern Copper Corporation (SCCO), Olin Corporation (OLN) and AptarGroup, Inc. (ATR), all posting RSI readings between 58 and 60.

The Relative Strength Index is a momentum indicator that measures the speed and magnitude of recent price movements on a scale of 0 to 100. Traditionally, an RSI above 70 suggests a stock may be overbought, while a reading below 30 indicates it may be oversold after an extended period of selling.

While none of the stocks on this list have crossed the conventional overbought threshold, their relatively high RSI readings indicate stronger price momentum than the broader market. Investors often monitor such stocks for potential changes in sentiment, particularly around earnings announcements that can reshape market expectations.

Here is the list:

1. Crown Holdings, Inc. (CCK), RSI: 69

2. CF Industries Holdings, Inc. (CF), RSI: 65

3. Corteva, Inc. (CTVA), RSI: 64

4. Greif, Inc. (GEF), RSI: 63

5. Ashland Inc. (ASH), RSI: 62

6. Ball Corporation (BALL), RSI: 60

7. Innospec Inc. (IOSP), RSI: 59

8. Silgan Holdings Inc. (SLGN), RSI: 59

9. LyondellBasell Industries N.V. (LYB), RSI: 58

10. Southern Copper Corporation (SCCO), RSI: 58

11. Olin Corporation (OLN), RSI: 58

12. AptarGroup, Inc. (ATR), RSI: 58

Materials ETFs: (XLB), (VAW), (IYM), (FXZ), (MXI), and (RSPM)