Top 3 Energy Stocks You May Want To Dump In Q4
Key takeaways
- These three energy names are showing signs of technical overextension and could face a short‑term pullback, especially with upcoming earnings and high recent gains.
- XOM RSI 79.3
- CVX RSI 77.4
- COP RSI 79.1
What happened
Three energy stocks—ExxonMobil, Chevron (CVX), and ConocoPhillips (COP)—are flagged as overbought by the Relative Strength Index, with values above 70 (XOM 79.3, CVX 77.4, COP 79.1). All three have gained roughly 12‑19% over the past month and are near their 52‑week highs (XOM $184.88, CVX $234.08, COP $152.77). ExxonMobil is set to report earnings Friday, expected at $4.03 per share on $106.02 billion revenue.
Why it matters
High RSI readings suggest these stocks may be due for a pullback, especially as momentum indicators warn of potential overextension. The recent monthly gains and proximity to 52‑week highs increase the likelihood of a short‑term correction. Investors relying on momentum strategies may need to reassess positions ahead…
Short-term and longer-term
Short-term. Over the next few days, watch for a possible pullback as the RSI signals overbought conditions.
Longer-term. Over the coming months, the rally’s sustainability will depend on underlying fundamentals.
Words on this card
- RSI
- Relative Strength Index, a momentum indicator that compares a stock’s recent gains to its losses; values above 70 often suggest the stock is overbought.
- 52‑week high
- The highest price a stock has traded at during the past year.
- Momentum indicator
- A tool that measures the speed or strength of a price movement, often used to gauge potential reversals.
- Revenue
- Sales — money the company took in before costs.
- Earnings Learn
- A company’s results report — usually profit and sales for a quarter, plus any update on what comes next.