Benzinga - by Lisa Levin, Benzinga Editor.
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.
TETRA Technologies, Inc. (NYSE: TTI)
- Tetra Technologies posted upbeat second-quarter results. Brady Murphy, TETRA President and Chief Executive Officer, stated, "Our exceptionally strong second quarter results reflect our employees delivering operational and financial excellence in our core businesses while successfully executing on our strategy." The company’s stock has a 52-week high of $6.54. .
- RSI Value: 70.48
- TTI Price Action: Shares of TETRA Technologies fell 1.7% to close at $6.32 on Monday.
- California has initiated legal action against several major oil companies, including Exxon Mobil Corporation, Shell, BP P.L.C., ConocoPhillips, Chevron and an industry trade group known as the American Petroleum Institute. The company’s stock has a 52-week high of $65.37.
- RSI Value: 70.54
- SHEL Price Action: Shares of Shell rose 0.9% to close at $65.23 on Monday.
- Questions are being raised about the trade relationship between U.S. oil and gas companies and Russia following the revelation that equipment worth over $7.1 million from Halliburton Company has been exported to Russia . The company has a 52-week high of $43.42.
- RSI Value: 73.73
- HAL Price Action: Shares of Halliburton gained 1.3% to close at $42.64 on Monday.
- Arch Resources posted weaker-than-expected second-quarter earnings. "The Arch team delivered another first-quartile cost performance in our core metallurgical segment in Q2, driving still-attractive margins despite a significantly weaker pricing environment," said Paul A. Lang, Arch's chief executive officer and president. The company’s 52-week high is $167.68.
- RSI Value: 80.52
- ARCH Price Action: Shares of Arch Resources fell 0.3% to close at $159.52 on Monday.
- Nabors Industries posted a loss for the second quarter. Anthony G. Petrello, Nabors Chairman, CEO and President, commented, “Our global market activity was essentially in line with our expectations, with the exception of the Lower 48, where oil related drilling fell somewhat in addition to the already anticipated reduction in gas basins.” The company has a 52-week high of $190.90.
- RSI Value: 76.68
- NBR Price Action: Shares of Nabors Industries rose 1.5% to settle at $138.38 on Monday.
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