Materials Sector Alert: Evaluating Overbought Signals in Almonty Industries and Air Products Stocks

In the current trading environment dated February 5, 2026, the materials sector features two notable equities, Almonty Industries Inc (NASDAQ: ALM) and Air Products and Chemicals Inc (NYSE: APD), which have attracted investor attention due to pronounced momentum signals in their price action. These momentum characteristics are quantified by the Relative Strength Index (RSI), a technical metric gauging the magnitude of recent price changes to evaluate overbought or oversold conditions. Specifically, an RSI exceeding 70 indicates that a stock may be overbought, reflecting a potential short-term pullback risk. Almonty Industries Inc has recently drawn focus following significant price movement and an analyst update. On February 4, Griffin Bryan, an analyst at DA Davidson, reiterated a Buy rating for Almonty while raising the target price from $12 to $18. This optimism comes amid the stock’s remarkable approximate 39% price increase over the prior month, elevating shares near a 52-week peak of $13.82. Despite this surge, the company’s RSI was recorded at 74.1, situating it firmly above the conventional overbought threshold. Concurrently, on February 4, the stock experienced a slight downward movement, retreating by 0.2% to close at $13.36. The case of Air Products and Chemicals Inc also warrants close observation. The firm recently announced first-quarter financial results outperforming analyst expectations as of January 30. CEO Eduardo Menezes highlighted a robust operational foundation, citing a 10% increase in adjusted earnings per share (EPS) and a 12% rise in adjusted operating income year-over-year, despite facing challenges related to helium market conditions within the quarter. These developments demonstrate the company’s ongoing commitment to enhancing earnings growth, optimizing capital-intensive projects, and maintaining financial discipline. Reflecting this positive financial performance, Air Products’ stock has appreciated roughly 12% over the preceding five trading days, approaching its 52-week high of $336.64. In alignment with these developments, Air Products’ RSI is at an elevated level of 75.9, signaling a similar pattern of strong momentum and potential overbought conditions as observed with Almonty. On February 4, shares closed at $286.59 following a rise of 3.1%, underscoring recent upward momentum within trading sessions. From a technical analysis perspective, both stocks present momentum scores and RSI values that may caution traders who prioritize momentum indicators in their decision-making process. The Benzinga Edge Stock Ratings assign Air Products a momentum score of 18.65, reflecting noteworthy recent price trends but leaving the longer-term implications subject to further validation. Market participants evaluating these materials stocks should weigh the implications of elevated RSIs and rapid price gains amid prevailing sector conditions. The observed price levels and momentum metrics signal a possibility of price consolidation or correction in the near term, challenging investors focused on momentum strategies to discern optimal entry and exit points carefully. Investors are advised to monitor ongoing earnings developments, analyst revisions, and sector-wide shifts in demand or supply factors that could materially affect these equities. Given the current data, both Almonty Industries and Air Products illustrate scenarios where robust recent performance is juxtaposed with technical indicators cautioning against extended enthusiasm without further validation. In summary, while these materials sector stocks have delivered commendable returns and positive earnings signals, their elevated RSI figures denote typical overbought status, warranting prudence among investors emphasizing momentum criteria within their trading frameworks. This nuanced viewpoint underscores the importance of balancing fundamental insights with technical signals in evolving market landscapes.