As of Feb. 27, 2024, the energy sector is sending a clear message to investors who rely on momentum in their trading decisions.
The Relative Strength Index (RSI) acts as a litmus test for momentum, indicating how a stock may perform in the short term based on its price action. An RSI above 70 is a red flag for being overbought.
Let’s delve into the notable overbought energy stocks in the current landscape.
Smart Sand, Inc. SND
- Smart Sand filed for a mixed shelf offering up to $200 million on Jan. 17. The company witnessed a 6% surge in stock price over the past five days, hitting a 52-week high of $2.65.
- RSI Value: 74.49
- SND Price Action: Shares closed at $2.00 on Monday.
Permian Resources Corporation PR
- On Jan. 30, Truist Securities analyst Neal Dingmann reiterated a Buy rating on Permian Resources and raised the price target from $22 to $23. The company saw a 12% increase in stock value over the last month, with a 52-week high at $15.49.
- RSI Value: 74.40
- PR Price Action: Permian Resources closed at $15.20 on Monday, up 1%.
SFL Corporation Ltd. SFL
- On Feb. 14, SFL boasted strong quarterly results. The company experienced a 10% surge in stock price over the past month, reaching a 52-week high of $13.41.
- RSI Value: 75.89
- SFL Price Action: SFL concluded Monday at $13.39, up 1.6%.
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