As of Jan. 18, 2024, four 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.
Gulf Island Fabrication, Inc. (NASDAQ:GIFI)
- On Dec. 4, Gulf Island board approved share repurchase program for up to $5.0 million of common stock, effective from Dec. 15, 2023 through Dec. 15, 2024. The company's stock jumped around 6% over the past month and has a 52-week high of $5.06 .
- RSI Value: 76.19
- GIFI Price Action: Shares of Gulf Island Fabrication fell 4.1% to close at $4.40 on Wednesday.
Peabody Energy Corporation (NYSE:BTU)
- On Oct. 26, 2023, Peabody Energy posted weaker-than-expected quarterly earnings. "In the third quarter of 2023, we delivered strong operational results with better-than-expected production and effective cost management. The diversity of our portfolio enables us to provide consistent and predictable results," said Peabody President and Chief Executive Officer Jim Grech. The company's stock gained around 9% over the past six months and has a 52-week high of $31.22.
- RSI Value: 71.99
- BTU Price Action: Shares of Peabody Energy gained 0.4% to close at $23.27 on Wednesday.
Battalion Oil Corporation (NYSE:BATL)
- On Jan. 9, Battalion Oil received a notice of non-compliance from NYSE American. The company's stock gained around 10% over the past six months and has a 52-week high of $12.37.
- RSI Value: 77.60
- BATL Price Action: Shares of Battalion Oil rose 0.3% to close at $9.62 on Wednesday.
Imperial Petroleum Inc. (NASDAQ:IMPP)
- On Dec. 22, Imperial Petroleum said all 13,875 shares of its Series C Cumulative Convertible Perpetual Preferred Stock have been converted by the holder, Flawless Management Inc, into 6,932,043 shares of the company's common stock. The company's stock jumped around 31% over the past month and has a 52-week high is $5.7150.
- RSI Value: 73.77
- IMPP Price Action: Shares of Imperial Petroleum rose 1% to close at $3.05 on Wednesday.
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