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.
Riley Exploration Permian, Inc. (NYSE:REPX)
- Riley Exploration Permian reported better-than-expected quarterly sales. “2022 was another record year for Riley Permian, with our out-performance continuing through the fourth quarter,” said Riley Permian Chairman and CEO, Bobby Riley. The company’s stock has a 52-week high of $47.79 .
- RSI Value: 75.33
- REPX Price Action: Shares of Riley Exploration Permian fell 1.5% to close at $44.91 on Wednesday.
Denbury Inc. (NYSE:DEN)
- Denbury posted weaker-than-expected quarterly results. Chris Kendall, Denbury’s President and Chief Executive Officer, said, “Our 2023 capital program furthers our strategy to build a world-class CCUS network, unparalleled both in scale and reliability, that delivers transformational growth for our shareholders.” The company’s stock has a 52-week high of $104.05.
- RSI Value: 72.26
- DEN Price Action: Shares of Denbury fell 0.1% to close at $94.46 on Wednesday.
PrimeEnergy Resources Corporation (NASDAQ:PNRG)
- PrimeEnergy Resources shares gained around 9% over the past month. The company has a 52-week high of $105.00.
- RSI Value: 71.66
- PNRG Price Action: Shares of PrimeEnergy Resources rose 0.6% to close at $96.40 on Wednesday.
Geospace Technologies Corporation (NASDAQ:GEOS)
- Geospace Technologies posted a narrower Q1 loss. Walter R. (“Rick”) Wheeler, President and CEO of the Company said, “We’re pleased to see that revenue for our first quarter of fiscal year 2023 exceeded $31 million. This is an increase of 73% over last year’s same period and represents the Company’s highest amount of quarterly revenue in the last eight-and-half years, namely since June of 2014.” The company’s 52-week high is $8.69.
- RSI Value: 71.55
- GEOS Price Action: Shares of Geospace Technologies rose 2.5% to close at $8.69 on Wednesday.
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