Top 2 Energy Stocks That Are Ticking Portfolio Bombs

The most overbought stocks in the energy 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.

TORM plc (NASDAQ: TRMD)

• TORM reported better-than-expected second-quarter EPS results. The company’s stock has a 52-week high of $36.60. .
• RSI Value: 71.28
• TRMD Price Action: Shares of TORM gained 3.1% to close at $31.28 on Wednesday.

Frontline plc (NYSE: FRO)

• JP Morgan analyst Samuel Bland recently maintained Frontline with a Neutral and raised the price target from $18.2 to $21.1. The company’s stock has a 52-week high of $22.93.
• RSI Value: 71.86
• FRO Price Action: Shares of Frontline gained 2.2% to close at $22.73 on Wednesday.

Read More: Insiders Buying Delta Air Lines And 3 Other Stocks