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.
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Verde Clean Fuels, Inc. (NASDAQ: VGAS)
Verde Clean Fuels has a market capitalization of $105.191 million. The company’s stock has a 52-week high of $21.00 . RSI Value: 77.55 VGAS Price Action: Shares of Verde Clean Fuels fell 4.3% to close at $11.24 on Thursday.
Equitrans Midstream Corporation (NYSE: ETRN)
RBC Capital recently upgraded Equitrans Midstream from Sector Perform to Outperform and raised its price target from $7 to $10. Democratic Senator Joe Manchin included a provision in the debt-limit deal to expedite the construction of the Mountain Valley Pipeline, a multi-billion-dollar natural gas project facing environmental obstacles. The company’s stock has a 52-week high of $9.90. RSI Value: 83.52 ETRN Price Action: Shares of Equitrans Midstream rose 3.6% to close at $8.84 on Thursday.
Aemetis, Inc. (NASDAQ: AMTX)
Aemetis reported worse-than-expected first-quarter EPS results and a year-over-year decrease in revenue. “Revenues for the first quarter of 2023 reflect our decision in late 2022 to idle the Keyes plant due to a 500% increase in energy cost brought about by insufficient natural gas storage in the Western United States, California in particular, and the resulting price spike that made continuing operations uneconomic,” said Todd Waltz, Chief Financial Officer of Aemetis. The company has a 52-week high of $11.50. RSI Value: 71.46 AMTX Price Action: Shares of Aemetis rose 9% to close at $5.20 on Thursday.
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