As of April 9, 2025, 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.

Inno Holdings Inc (NASDAQ:INHD)

On Dec. 13, 2024, Inno Holdings ( INHD ) announced expansion into electronic product trading and digital transformation initiatives. Mr. Ding Wei, Chief Executive Officer of INNO ( INHD ) said, “INNO plans to expand its trading business into the electronic products industry, including cell phones, computers, tablets, and more. We have a professional team dedicated to helping our business partners achieve greater value. In the future, we intend to collaborate with more partners to explore new business opportunities and create additional value for both our partners and shareholders.” The company's stock gained around 23% over the past five days and has a 52-week high of $9.10.

RSI Value: 73.1                                

INHD Price Action: Shares of Inno Holdings ( INHD ) gained 4.6% to close at $5.70 on Tuesday.

Edge Stock Ratings: 71.55 Momentum score with Value at 43.76.

Radius Recycling Inc (NASDAQ:RDUS)

On April 4, the Company reported a loss per share from continuing operations of $1.15 in the second quarter, versus a year-ago loss of $1.19 per share. The company's stock gained around 125% over the past month and has a 52-week high of $29.20.

RSI Value: 75.9

RDUS Price Action: Shares of Radius Recycling ( RDUS ) fell 0.6% to close at $28.53 on Tuesday.

Unlock the rest of the BZ Edge Rankings and see how top stocks stack up.

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