As of March 26, 2024, three 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.
$Archrock (AROC.US)$
On Feb. 20, Archrock posted better-than-expected quarterly sales. The company's stock gained around 6% over the past five days and has a 52-week high of $20.14 .
RSI Value: 70.41
AROC Price Action: Shares of Archrock gained 0.3% to close at $19.40 on Monday.
$Tidewater (TDW.US)$
On Feb. 29, Tidewater posted downbeat fourth-quarter results. Quintin Kneen, Tidewater's President and Chief Executive Officer, commented, "The past year represented a year of significant milestones and profitable growth for Tidewater with revenue and gross profit improving each quarter throughout the year. The supply and demand dynamics positively influencing the offshore vessel industry drove strong financial and operational results, with revenue cresting the $1.0 billion mark, a significant achievement for Tidewater that was bolstered by the acquisitions done in 2022 and 2023." The company's stock gained around 24% over the past month and has a 52-week high of $92.38.
RSI Value: 76.41
TDW Price Action: Shares of Tidewater gained 1% to close at $91.79 on Monday.
$VAALCO Energy (EGY.US)$
On March 13, VAALCO Energy reported better-than-expected fourth-quarter financial results. George Maxwell, VAALCO's Chief Executive Officer commented, "In 2023, we delivered record financial results, successfully integrated a major acquisition and continued to return a meaningful amount of value to our shareholders through dividends and share buybacks. Sales and production volumes nearly doubled, we grew our cash position at year-end by nearly $84 million and we generated record Adjusted EBITDAX of $280 million." The company's stock gained around 64% over the past month and has a 52-week high of $7.00.
RSI Value: 90.55
EGY Price Action: Shares of VAALCO Energy gained 12.6% to close at $6.95 on Monday.