As of Dec. 18, 2023, two stocks in the energy 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.
Imperial Petroleum Inc. (NASDAQ:IMPP)
- On Dec. 6, Imperial Petroleum agreed to repurchase 3.2 million warrants. The company's stock jumped around 42% over the past month and has a 52-week high of $5.7150.
- RSI Value: 79.96
- IMPP Price Action: Shares of Imperial Petroleum closed at $2.14 on Friday.
Top Ships Inc. (NASDAQ:TOPS)
- On Dec. 14, TOP Ships announced a $4 million share repurchase program for a period of three months. The company's stock gained around 115% over the past month and has a 52-week high of $25.80.
- RSI Value: 74.57
- TOPS Price Action: Shares of Top Ships fell 0.4% to close at $17.43 on Friday.
Read More: 2U And 3 Other Stocks Under $4 Insiders Are Buying