Top 3 Energy Stocks That May Crash In Q2

As of April 10, 2024, three 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.

Shell plc SHEL

• Shell, last week, updated its first quarter FY24 operational outlook, reflecting lower results from its liquefied natural gas (LNG) trading business. The company’s stock gained around 12% over the past month and has a 52-week high of $72.72 .
• RSI Value: 88.07
• SHEL Price Action: Shares of Shell gained 0.1% to close at $71.84 on Tuesday.

VAALCO Energy, Inc. EGY

• On March 13, VAALCO Energy reported better-than-expected fourth-quarter financial results. George Maxwell, VAALCO’s Chief Executive Officer commented, “In 2023, we delivered record financial results, successfully integrated a major acquisition and continued to return a meaningful amount of value to our shareholders through dividends and share buybacks. Sales and production volumes nearly doubled, we grew our cash position at year-end by nearly $84 million and we generated record Adjusted EBITDAX of $280 million.” The company’s stock gained around 63% over the past month and has a 52-week high of $7.51.
• RSI Value: 74.51
• EGY Price Action: Shares of VAALCO Energy gained 1.7% to close at $7.20 on Tuesday.

Permian Resources Corporation PR

• On April 9, Raymond James analyst John Freeman initiated coverage on Permian Resources with a Strong Buy rating and announced a price target of $24. The company’s stock gained around 13% over the past month and has a 52-week high of $18.25.
• RSI Value: 76.34
• PR Price Action: Shares of Permian Resources gained 1.7% to close at $18.08 on Tuesday.

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