As of Sept. 20, 2024, 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.
Brooge Energy Ltd (NASDAQ:BROG)
- On June 5, Brooge Energy announced the receipt of Nasdaq non-compliance letter. The company's stock gained around 82% over the past month and has a 52-week high of $6.66.
- RSI Value: 83.55
- BROG Price Action: Shares of Brooge Energy gained 14.9% to close at $1.77 on Thursday.
Battalion Oil Corp (NYSE:BATL)
- On Sept. 19, Battalion Oil announced it has amended its merger agreement with Fury Resources for the acquisition of all outstanding shares of Battalion at $7.00 per share in cash. Avi Mirman, Co-Founder and Chairman of Fury Resources stated "With this acquisition, Fury has secured a foothold in one of the world's most prolific basins. Our team has significant experience in the region, and we believe these assets present a compelling value proposition for our investors. With a deep inventory of high return locations and consolidation opportunities in the area, we believe this asset can be scaled quickly and provide a meaningful return to our investors. We have strong institutional support for this transaction, including the Rollover Stockholders. We view their decision to stay in the investment opportunity as a strong vote of confidence in our ability to deliver results and are excited for us to get to work." The company's stock gained around 17% over the past month and has a 52-week high of $9.69.
- RSI Value: 83.48
- BATL Price Action: Shares of Battalion Oil fell 3.6% to close at $2.94 on Thursday.
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