Top 2 Utilities Stocks That May Collapse In Q4

As of Oct. 2, 2024, two stocks in the utilities 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.

NiSource Inc NI

• On Aug. 7, NiSource posted better-than-expected quarterly earnings. "During the second quarter NiSource placed the Cavalry Solar & Storage project into service and reported strong earnings results, executing our investment plan and delivering consistent shareholder returns," said NiSource President and CEO, Lloyd Yates. The company's stock gained around 5% over the past month and has a 52-week high of $35.10.
• RSI Value: 77.81                              
• NI Price Action: Shares of NiSource gained 0.5% to close at $34.83 on Tuesday.

Xcel Energy Inc XEL

• On Sept. 30, Keybanc analyst Sophie Karp maintained Xcel Energy with an Overweight and raised the price target from $66 to $69.. The company's stock gained around 4% over the past month and has a 52-week high of $65.64.
• RSI Value: 74.71
• XEL Price Action: Shares of Xcel Energy fell 0.03% to close at $65.32 on Tuesday.

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