Materials sector stocks Northern Dynasty Minerals (NAK) and Ferroglobe (GSM) are exhibiting strong momentum, with RSIs of 88.5 and 75.3 respectively, placing them in overbought territory as of Oct. 7, 2025. NAK gained 84% in the last month following a $12 million royalty payment, while GSM, despite a Q2 adjusted loss, rose 17% in five days, buoyed by anticipated benefits from U.S. trade actions. This significant short-term appreciation and high RSI values may signal increased risk for momentum-focused investors.
As of Oct. 7, 2025, two stocks in the materials 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. Northern Dynasty Minerals Ltd (NYSE:NAK) - On Sept. 25, Northern Dynasty Minerals and its 100%-owned U.S.-based subsidiary Pebble Limited Partnership announced the receipt of a $12 million payment representing the fourth tranche of investment under the Company’s royalty agreement dated July 26, 2022, as amended. “We appreciate the continued support from our royalty investor and are pleased to see the fourth payment of $12 million completed, bringing its total investment in the royalty up to $48 million of a possible $60 million available under the royalty agreement,” said Ron Thiessen, Northern Dynasty’s President and CEO. The company's stock gained around 84% over the past month and has a 52-week high of $2.40. - RSI Value: 88.5 - NAK Price Action: Shares of Northern Dynasty Minerals jumped 14.4% to close at $1.51 on Monday. - Edge Stock Ratings: 97.34 Momentum score. Ferroglobe PLC (NASDAQ:GSM) - On Aug. 5, Ferroglobe posted an adjusted loss for the second quarter. Dr. Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “While the second quarter was marked by significant external challenges, including aggressive silicon metal imports into Europe from China and broader geopolitical uncertainty, we remain focused on managing what we can control. We are encouraged by the early benefits that we are seeing from U.S. trade actions, and we believe upcoming decisions in both the U.S. and the EU could provide meaningful support for fair competition and improved pricing.” The company's stock gained around 17% over the past five days and has a 52-week high of $5.24. - RSI Value: 75.3 - GSM Price Action: Shares of Ferroglobe closed at $5.04 on Monday. Don't miss out on the full BZ Edge Rankings—compare all the key stocks now. Read This Next: Photo via Shutterstock © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Northern Dynasty Minerals (NAK) exhibits extreme overbought conditions with an 88.5 RSI as of Oct. 7, 2025, after gaining 84% in the past month and 14.4% on Monday to $1.51. This significant momentum follows the receipt of a $12 million royalty payment, totaling $48 million out of a possible $60 million from its royalty agreement. Despite this positive financing news, the stock remains below its 52-week high of $2.40, indicating potential for prior volatility or further upside. Ferroglobe (GSM) is also in overbought territory with an RSI of 75.3, experiencing a 17% gain over the last five days to close at $5.04. This price surge occurs despite the company reporting an adjusted loss for the second quarter, attributed to external challenges like aggressive silicon metal imports from China. The CEO's forward-looking optimism regarding upcoming U.S. and EU trade decisions is cited as a primary driver, suggesting a rally based on prospective policy support rather than current fundamental strength. These elevated RSI values for both NAK and GSM signal substantial short-term price appreciation, which typically precedes a potential near-term correction or consolidation. While NAK's recent catalysts are financial, GSM's reliance on future regulatory actions introduces a different layer of uncertainty. The overall cautious tone and mixed sentiment suggest that while momentum is strong, the inherent risks associated with overbought indicators are pronounced.
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