As of Nov. 21, 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.
Natural Gas Services Group, Inc. (NYSE:NGS)
- On Nov. 14, Natural Gas Services posted better-than-expected quarterly earnings. "We delivered another quarter of significant top and bottom-line growth, as well as a material increase in net cash provided by operating activities, as we further grow and optimize our business," said Justin Jacobs, Chief Executive Officer. "Compression demand, particularly in the Permian Basin, remains robust. We continue to capitalize on our favorable industry position, innovative compression units, and strong customer relationships to increase investments in our large horsepower fleet as we look to drive growth in rental fleet horsepower, rental revenue, and cash flow." The company's stock gained around 32% over the past month and has a 52-week high of $26.00.
- RSI Value: 81.77
- NGS Price Action: Shares of Natural Gas Services closed at $25.91 on Wednesday.
Range Resources Corp (NYSE:RRC)
- On Oct. 22, the company posted better-than-expected quarterly earnings. Dennis Degner, the Company's CEO, commented, "This month marks the 20th anniversary of Range drilling the first commercial Marcellus shale well. The Marcellus and Utica now produce nearly one-third of U.S. natural gas, and the U.S. has become the leading global supplier of safe, clean, affordable natural gas. We are tremendously proud of the role Range has played in this hugely impactful achievement and we are even more excited about what the future holds as global energy demand increases, improving the quality of life for billions of people living in energy poverty." The company's stock gained around 17% over the past month and has a 52-week high of $39.33.
- RSI Value: 76.05
- RRC Price Action: Shares of Range Resources closed at $35.16 on Wednesday.
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