Top 4 Utilities Stocks That Should Keep You Up At Night

The most overbought stocks in the utilities 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.

Companhia Energética de Minas Gerais CIG

• The company’s stock gained 4% over the past month. The company’s stock has a 52-week high of $2.62 .
• RSI Value: 70.11
• CIG Price Action: Shares of Companhia Energética de Minas Gerais rose 2.4% to close at $2.59 on Monday.

Centrais Elétricas Brasileiras S.A. - Eletrobrás EBR

• The company’s stock gained 10% over the past month. The company’s stock has a 52-week high of $10.39.
• RSI Value: 75.11
• EBR Price Action: Shares of Centrais Elétricas Brasileiras rose 1.9% to close at $8.00 on Monday.

Constellation Energy Corporation CEG

• Wells Fargo recently maintained Constellation Energy with an Overweight and raised the price target from $115 to $120. The company has a 52-week high of $97.89.
• RSI Value: 81.81
• CEG Price Action: Shares of Constellation Energy rose 0.5% to close at $93.75 on Monday.

Companhia Paranaense de Energia - COPEL ELP

• The company’s shares gained around 5% over the previous month. The company’s 52-week high is $8.25.
• RSI Value: 71.00
• ELP Price Action: Shares of Companhia Paranaense de Energia rose 0.1% to close at $8.06 on Monday.

Read More: Workday, Alaska Air And 2 Other Stocks Insiders Are Selling