Top 2 Energy Stocks That May Fall Off A Cliff In February

As of Feb. 3, 2025, two 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.

Ecopetrol SA EC

• On Monday, Ecopetrol disclosed that Ecopetrol Permian LLC and Occidental Petroleum Corporation OXY have planned to extend the development plan for Rodeo Midland Basin in the Permian Basin (Texas, USA). The agreement between Ecopetrol Permian and Occidental Petroleum, under the joint venture formed in July 2019, includes a drilling plan for 34 wells to be executed between April 2025 and June 2026, in addition to the ongoing wells planned for early 2025.. The company’s stock surged around 16% over the past month and has a 52-week high of $12.90.
• RSI Value: 71.3                                
• EC Price Action: Shares of Ecopetrol gained 3.1% to trade at $9.58 on Monday.

Core Natural Resources Inc CNR

• On Jan. 31, Jefferies analyst Christopher LeFemina initiated coverage on Core Natural Resources with a Hold rating and announced a price target of $93. The company’s stock gained around 825% over the past five years and has a 52-week high of $134.14.
• RSI Value: 70.6
• CNR Price Action: Shares of Core Natural Resources fell 3.9% to trade at $86.92 on Monday.

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