As of January 30, 2026, two energy sector stocks are exhibiting momentum indicators that may signal caution for investors relying on short-term price strength.
The Relative Strength Index (RSI), a momentum indicator that compares the magnitude of recent gains to recent losses, is often used to assess whether a stock is overbought or oversold. An asset is generally considered overbought when the RSI reaches elevated levels, which can suggest a potential price correction.
VAALCO Energy (NYSE: EGY) has experienced significant price movement recently. On January 16, Freedom Capital Markets analyst Sergey Pigarev initiated coverage on VAALCO Energy with a Buy rating and set a price target of $7.30. The stock has increased approximately 42% over the past month, reaching a 52-week high of $5.36. On January 29, VAALCO Energy shares closed at $5.17, up 5.7% for the day. The stock holds a momentum score of 81.87 and a value score of 91.69 according to Edge Stock Ratings.
Suncor Energy also showed notable gains. On January 23, Goldman Sachs analyst Neil Mehta maintained a Buy rating on Suncor Energy and raised the price target from $48 to $54. The stock has risen about 21% over the past month. On January 29, Suncor Energy shares closed at $53.69, up 1.3% for the day.
These momentum indicators suggest that investors should monitor these stocks closely, as elevated RSI levels can precede price corrections.
