The most overbought stocks in the energy sector presents an opportunity to go short on these overvalued companies.
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.
Here’s the latest list of major overbought players in this sector.
Weatherford International plc WFRD
- Weatherford recently posted better-than-expected quarterly results. Girish Saligram, President and Chief Executive Officer, said, “The outstanding results of the fourth quarter 2022 and full year are a concrete marker of the success of our turnaround initiatives for Weatherford. The company’s stock has a 52-week high of $65.27 .
RSI Value: 77.44
WFRD Price Action: Shares of Weatherford International gained 12.6% to close at $64.48 on Wednesday and added 0.1% in after-hours trading.
Green Plains Inc. GPRE
- Green Plains recently posted a Q4 loss of $0.66 per share. “Execution on our transformation plan hit an important milestone in recent weeks with the completion of our fifth MSC system,” said Todd Becker, President and Chief Executive Officer. The company’s stock has a 52-week high of $41.25.
RSI Value: 73.16
GPRE Price Action: Shares of Green Plains jumped 7.7% to close at $36.54 on Wednesday and lost 1% in after-hours trading.
Geospace Technologies Corporation GEOS
- Geospace Technologies recently posted a narrower quarterly loss. The company has a 52-week high of $7.36.
- RSI Value: 75.16
- GEOS Price Action: Shares of Geospace Technologies rose 1.4% to close at $5.04 on Wednesday and added 4% in after-hours trading.
BP p.l.c. BP
- BP reported record 2022 earnings amid growing calls for the U.K. government to boost taxes on companies profiting from the high price of oil and natural gas after Russia invaded Ukraine. The company’s 52-week high is $38.99.
- RSI Value: 72.31
- BP Price Action: Shares of BP gained 2.4% to close at $38.65 on Wednesday and added 0.1% in after-hours trading.
Oceaneering International, Inc. OII
- Oceaneering International is expected to report financial results for the fourth quarter on Thursday, Feb. 23, 2023. The company has a 52-week high of $21.85.
- RSI Value: 71.20
- OII Price Action: Shares of Oceaneering International rose 2.2% to settle at $21.64 on Tuesday and added 3.4% in after-hours trading.
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