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Two Materials Stocks Flashing Overbought Warnings

MarketDash Editorial Team
2 days ago
Nucor and Ashland are showing RSI readings above 70, suggesting these materials sector stocks may be due for a pullback after strong recent runs. Here's what momentum traders need to know about these overbought positions.

If you're a momentum trader who pays attention to technical signals, a couple of materials stocks might deserve a closer look right now. As of December 5, 2025, two companies in the sector are flashing overbought warnings that could signal potential weakness ahead.

The Relative Strength Index (RSI) is a momentum indicator that essentially measures how strong a stock is on up days versus down days. It's a useful tool for getting a read on short-term performance potential. When the RSI climbs above 70, that's typically considered overbought territory—a sign that a stock might have gotten ahead of itself and could be due for a breather.

Here are the two materials sector players currently sitting in the overbought zone.

Nucor Corp (NUE)

The steel producer has had a solid run lately, with shares climbing roughly 12% over the past month. On December 4, Nucor announced it was promoting Steve Laxton to president and chief operating officer. Leon Topalian, Nucor's Chair and Chief Executive Officer, had high praise for the move: "Over the past 22 years, Steve has demonstrated exceptional leadership and strategic vision and has been instrumental to Nucor's success. Steve's new role as President and COO will give him an opportunity to have an even greater impact, and I look forward to working with him in this next chapter of his leadership."

The stock has reached a 52-week high of $166.26 during this rally.

RSI Value: 70.1

Price Action: Shares of Nucor fell 1.3% to close at $162.54 on Thursday.

Edge Stock Ratings: Momentum score of 91.92 with Value at 93.51.

Ashland Inc (ASH)

This one's interesting because Ashland has gained about 15% over the past month despite posting underwhelming quarterly results back on November 4. Guillermo Novo, chair and chief executive officer, tried to find the silver lining: "Ashland's fourth-quarter performance reflects our disciplined approach and ability to deliver results in line with expectations, even as market conditions remained challenging. We maintained strong margins and delivered revenue and EBITDA consistent with prior guidance. Our continued focus on execution helped offset pockets of competitive pressure and muted demand."

So basically, they hit their own targets but those targets weren't particularly exciting. Still, the market has pushed shares higher, bringing the stock to a 52-week high of $78.12.

RSI Value: 71.4

Price Action: Shares of Ashland rose 0.1% to close at $58.29 on Thursday.

Both stocks are now in territory where momentum traders might start getting cautious. An RSI above 70 doesn't guarantee a decline, but it does suggest the recent buying enthusiasm might be getting stretched. For investors who care about technical signals, these are two names worth monitoring closely in the coming weeks.

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Two Materials Stocks Flashing Overbought Warnings

MarketDash Editorial Team
2 days ago
Nucor and Ashland are showing RSI readings above 70, suggesting these materials sector stocks may be due for a pullback after strong recent runs. Here's what momentum traders need to know about these overbought positions.

If you're a momentum trader who pays attention to technical signals, a couple of materials stocks might deserve a closer look right now. As of December 5, 2025, two companies in the sector are flashing overbought warnings that could signal potential weakness ahead.

The Relative Strength Index (RSI) is a momentum indicator that essentially measures how strong a stock is on up days versus down days. It's a useful tool for getting a read on short-term performance potential. When the RSI climbs above 70, that's typically considered overbought territory—a sign that a stock might have gotten ahead of itself and could be due for a breather.

Here are the two materials sector players currently sitting in the overbought zone.

Nucor Corp (NUE)

The steel producer has had a solid run lately, with shares climbing roughly 12% over the past month. On December 4, Nucor announced it was promoting Steve Laxton to president and chief operating officer. Leon Topalian, Nucor's Chair and Chief Executive Officer, had high praise for the move: "Over the past 22 years, Steve has demonstrated exceptional leadership and strategic vision and has been instrumental to Nucor's success. Steve's new role as President and COO will give him an opportunity to have an even greater impact, and I look forward to working with him in this next chapter of his leadership."

The stock has reached a 52-week high of $166.26 during this rally.

RSI Value: 70.1

Price Action: Shares of Nucor fell 1.3% to close at $162.54 on Thursday.

Edge Stock Ratings: Momentum score of 91.92 with Value at 93.51.

Ashland Inc (ASH)

This one's interesting because Ashland has gained about 15% over the past month despite posting underwhelming quarterly results back on November 4. Guillermo Novo, chair and chief executive officer, tried to find the silver lining: "Ashland's fourth-quarter performance reflects our disciplined approach and ability to deliver results in line with expectations, even as market conditions remained challenging. We maintained strong margins and delivered revenue and EBITDA consistent with prior guidance. Our continued focus on execution helped offset pockets of competitive pressure and muted demand."

So basically, they hit their own targets but those targets weren't particularly exciting. Still, the market has pushed shares higher, bringing the stock to a 52-week high of $78.12.

RSI Value: 71.4

Price Action: Shares of Ashland rose 0.1% to close at $58.29 on Thursday.

Both stocks are now in territory where momentum traders might start getting cautious. An RSI above 70 doesn't guarantee a decline, but it does suggest the recent buying enthusiasm might be getting stretched. For investors who care about technical signals, these are two names worth monitoring closely in the coming weeks.

    Two Materials Stocks Flashing Overbought Warnings - MarketDash News