As of Feb. 18, 2025, 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.
Ecopetrol SA EC
- On Feb. 13, JP Morgan analyst Rodolfo Angele upgraded Ecopetrol from Underweight to Neutral and raised the price target from $7.5 to $9.5. The company's stock gained around 21% over the past month and has a 52-week high of $12.90.
- RSI Value: 72.8
- EC Price Action: Shares of Ecopetrol gained 0.3% to close at $10.25 on Friday.
BP plc BP
- On Feb. 11, BP reported fourth-quarter results. Sales and other operating revenues came in at $45.752 billion, missing the consensus of $47.511 billion. Hydrocarbon production was 850 mboe/d (-5.4% Y/Y), with underlying production declining 2.7% Y/Y mainly due to base decline in Egypt. The company's stock gained around 11% over the past month and has a 52-week high of $40.40.
- RSI Value: 80
- BP Price Action: Shares of BP gained 1.5% to close at $35.00 on Friday.
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