As of Dec. 1, 2023, four 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.

REX American Resources Corporation (NYSE:REX)

• On Nov. 30, REX American Resources reported better-than-expected third-quarter financial results. REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, "Our fiscal third quarter results mark the best quarterly net income and earnings per share results in our 39 year history as a public company and highlights the strength of our ethanol operations." The company’s stock jumped around 33% over the past five days and has a 52-week high of $51.19 .
• RSI Value: 85.13
• REX Price Action: Shares of REX American Resources jumped 32.9% to close at $49.02 on Thursday.

Phillips 66 (NYSE:PSX)

• Phillips 66 confirmed ongoing discussions with Elliot Investment Management. Elliot disclosed a $1 billion stake in the company and planned to seek board seats. The company’s stock gained around 9% over the past five days and has a 52-week high of $129.75.
• RSI Value: 75.71
• PSX Price Action: Shares of Phillips 66 gained 5.5% to close at $128.89 on Thursday.

New Fortress Energy Inc. (NASDAQ:NFE)

Cheniere Energy, Inc. (NYSE:LNG)

• On Nov. 2, Chenire Energy posted better-than-expected quarterly sales. "The third quarter was marked by key milestones achieved across the Cheniere platform, highlighted by the production of our 3,000th LNG cargo since start-up in 2016. Cheniere achieved that production milestone faster than any other LNG operator in history, which is further evidence of our dedication to operational excellence," said Jack Fusco, Cheniere’s President and Chief Executive Officer. The company’s stock gained around 8% over the past month and has a 52-week high is $183.24.
• RSI Value: 70.95
• LNG Price Action: Shares of Cheniere Energy rose 1% to close at $182.15 on Thursday.

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