As of Nov. 7, 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.

Select Water Solutions Inc WTTR

• On Nov. 5, Select Water Solutions reported better-than-expected third-quarter revenue results.  John Schmitz, Select’s Chairman of the Board, President and Chief Executive Officer, stated, “During the third quarter Select delivered another quarter of continued margin improvement and profitability, while generating solid free cash flow. Supported by revenue growth and margin improvement in our Water Infrastructure segment, our unique growth story continued as we were able to improve consolidated gross margins and increase net income and adjusted EBITDA during the third quarter despite activity pullbacks in the broader macro environment.” The company’s stock gained around 29% over the past five days and has a 52-week high of $14.10.
• RSI Value: 84.39                              
• WTTR Price Action: Shares of Select Water Solutions gained 25.5% to close at $13.97 on Wednesday.

Propetro Holding Corp PUMP

• On Oct. 30, ProPetro posted downbeat quarterly results. Sam Sledge, Chief Executive Officer, commented, “ProPetro’s third quarter results reflect our team’s success in advancing our strategy, even in a turbulent market environment. Thanks to our decisive actions and despite moderated customer spending and activity levels, ProPetro delivered strong financial performance in the third quarter, while returning capital to shareholders and capturing additional market share.” The company’s stock gained around 14% over the past five days and has a 52-week high of $10.02.
• RSI Value: 71.32
• PUMP Price Action: Shares of Propetro Holding gained 16.3% to close at $8.43 on Wednesday.

Natural Gas Services Group, Inc. NGS

• Natural Gas Services Group will host a conference call to review its third-quarter financial results on Friday, Nov. 15. The company’s stock gained around 19% over the past five days and has a 52-week high of $25.24.
• RSI Value: 77.03
• NGS Price Action: Shares of Natural Gas Services gained 12.8% to close at $22.90 on Wednesday.

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