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Two Materials Stocks Flashing Overbought Warning Signals

MarketDash Editorial Team
17 days ago
Sigma Lithium and Solstice Advanced Materials are showing elevated RSI readings above 70, suggesting these momentum plays might be due for a breather after recent rallies.

When stocks get too hot, momentum traders start watching the exit signs. As of November 20, 2025, two materials sector companies are sporting RSI readings that suggest they might have gotten ahead of themselves.

The Relative Strength Index (RSI) is essentially a momentum scorecard that compares how strongly a stock moves on up days versus down days. Think of it as a temperature gauge for stock enthusiasm. When the RSI climbs above 70, it's generally considered overbought territory, meaning the stock might be due for a breather after an aggressive run-up.

Here's a look at the two materials stocks currently flashing warning signals.

Sigma Lithium Corp

Sigma Lithium Corp (SGML) has been on an absolute tear. The lithium producer reported third-quarter revenue of $28.5 million on November 14, with an EPS loss of 10 cents compared to a 23-cent loss in the prior year quarter. The company posted net revenue growth of 69% quarter over quarter and 36% year over year, driven by a commercialization strategy that capitalized on seasonal lithium pricing and provisional pricing adjustments.

The market liked what it saw. Sigma Lithium's stock rocketed around 71% over a five-day period, pushing shares to a 52-week high of $14.71. That kind of momentum sent the RSI soaring to 76.9, well into overbought territory.

RSI Value: 76.9

SGML Price Action: Shares of Sigma Lithium jumped 33.3% to close at $10.36 on Wednesday.

Momentum Score: 81.66

Solstice Advanced Materials Inc

Solstice Advanced Materials Inc (SOLS) is a fresher face in the public markets, having just spun off from Honeywell on October 30. The company reported third-quarter 2025 results on November 6, with President and CEO David Sewell noting, "I am excited to report Solstice's third quarter results, marking our first earnings announcement following our spin-off from Honeywell on October 30."

The stock has gained approximately 12% over the past month and hit a 52-week high of $61.00. That rally pushed the RSI to 73.6, another reading that suggests the stock might be stretched in the near term.

RSI Value: 73.6

SOLS Price Action: Shares of Solstice Advanced Materials rose 3.1% to close at $42.72 on Wednesday.

For momentum traders, these elevated RSI readings don't necessarily mean sell immediately. They just mean pay attention. Overbought stocks can stay overbought longer than you'd expect, especially when there's genuine fundamental momentum behind the move. But history suggests that when the RSI gets this extended, some consolidation or pullback often follows.

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Two Materials Stocks Flashing Overbought Warning Signals

MarketDash Editorial Team
17 days ago
Sigma Lithium and Solstice Advanced Materials are showing elevated RSI readings above 70, suggesting these momentum plays might be due for a breather after recent rallies.

When stocks get too hot, momentum traders start watching the exit signs. As of November 20, 2025, two materials sector companies are sporting RSI readings that suggest they might have gotten ahead of themselves.

The Relative Strength Index (RSI) is essentially a momentum scorecard that compares how strongly a stock moves on up days versus down days. Think of it as a temperature gauge for stock enthusiasm. When the RSI climbs above 70, it's generally considered overbought territory, meaning the stock might be due for a breather after an aggressive run-up.

Here's a look at the two materials stocks currently flashing warning signals.

Sigma Lithium Corp

Sigma Lithium Corp (SGML) has been on an absolute tear. The lithium producer reported third-quarter revenue of $28.5 million on November 14, with an EPS loss of 10 cents compared to a 23-cent loss in the prior year quarter. The company posted net revenue growth of 69% quarter over quarter and 36% year over year, driven by a commercialization strategy that capitalized on seasonal lithium pricing and provisional pricing adjustments.

The market liked what it saw. Sigma Lithium's stock rocketed around 71% over a five-day period, pushing shares to a 52-week high of $14.71. That kind of momentum sent the RSI soaring to 76.9, well into overbought territory.

RSI Value: 76.9

SGML Price Action: Shares of Sigma Lithium jumped 33.3% to close at $10.36 on Wednesday.

Momentum Score: 81.66

Solstice Advanced Materials Inc

Solstice Advanced Materials Inc (SOLS) is a fresher face in the public markets, having just spun off from Honeywell on October 30. The company reported third-quarter 2025 results on November 6, with President and CEO David Sewell noting, "I am excited to report Solstice's third quarter results, marking our first earnings announcement following our spin-off from Honeywell on October 30."

The stock has gained approximately 12% over the past month and hit a 52-week high of $61.00. That rally pushed the RSI to 73.6, another reading that suggests the stock might be stretched in the near term.

RSI Value: 73.6

SOLS Price Action: Shares of Solstice Advanced Materials rose 3.1% to close at $42.72 on Wednesday.

For momentum traders, these elevated RSI readings don't necessarily mean sell immediately. They just mean pay attention. Overbought stocks can stay overbought longer than you'd expect, especially when there's genuine fundamental momentum behind the move. But history suggests that when the RSI gets this extended, some consolidation or pullback often follows.

    Two Materials Stocks Flashing Overbought Warning Signals - MarketDash News