The materials sector is starting to flash some interesting signals on the charts. After taking a beating, several assets have dropped into territory that's catching traders' eyes—the kind of moves where technical patterns suggest the selling might've run its course.

When you look at momentum indicators like RSI, there's a playbook most traders follow. Once RSI dips below 30, the narrative usually shifts. It doesn't guarantee an instant reversal, but it does tell you that selling pressure has gotten extreme—the kind of extreme that historically sets up countertrove moves.

Right now, that's exactly what's happening in pockets of the materials space. The sharp declines have pushed valuations into discounted zones, and the technical readings are starting to align with what traders look for when hunting reversals.

It's not a signal to go all-in, but it's definitely the type of setup worth monitoring. When oversold conditions meet strong technical divergence, that's usually when the next wave of interest rolls in. Keep an eye on whether volume follows—that's often the tell for whether the move sticks.