Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of May 22, 2024, five 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.
NextDecade Corporation (NASDAQ:NEXT)
- On May 20, Abu Dhabi Oil & Gas giant ADNOC announced it secured an equity position and LNG offtake agreement in NextDecade's Rio Grande LNG project. Matt Schatzman, NextDecade's Chairman and Chief Executive Officer, said, "We are excited to begin a multi-decade partnership with ADNOC, a major player in the global LNG market, and we look forward to having them as both a commercial offtaker and an equity partner in Rio Grande LNG. LNG from our facility will allow ADNOC to further increase its presence in the global LNG market, while also supplying global customers with more affordable and less carbon-intensive LNG." The company's stock gained around 28% over the past month and has a 52-week high of $8.74.
- RSI Value: 77.76
- NEXT Price Action: Shares of NextDecade fell 1% to close at $7.93 on Tuesday.
- On May 2, Targa Resources posted better-than-expected first-quarter sales. The company's stock gained around 4% over the past five days and has a 52-week high of $119.68.
- RSI Value: 71.51
- TRGP Price Action: Shares of Targa Resources rose 0.6% to close at $118.20 on Tuesday.
- On May 9, Teekay Tankers posted stronger-than-expected quarterly results. The company's stock gained around 28% over the past month and has a 52-week high of $72.76.
- RSI Value: 76.10
- TNK Price Action: Shares of Teekay Tankers gained 1.7% to close at $71.83 on Tuesday.
- On Feb. 29, Nordic American Tankers posted weak quarterly results. The company's stock jumped around 15% over the past month and has a 52-week high is $4.83.
- RSI Value: 73.32
- NAT Price Action: Shares of Nordic American Tankers rose 0.9% to close at $4.34 on Tuesday.
- On May 1, ProPetro Holding posted upbeat quarterly earnings. Sam Sledge, Chief Executive Officer, commented, “We are excited to start off 2024 with strong financial results and positive momentum. Our results reflect a strategy that is working.” The company's stock jumped around 17% over the past month and has a 52-week high of $11.37.
- RSI Value: 71.11
- PUMP Price Action: Shares of ProPetro Holding rose 2.6% to close at $9.90 on Tuesday.
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