A website called Benzinga wrote an article about three energy companies that might lose value soon. They looked at a tool called RSI, which helps them see how fast a company's stock price is going up or down. If the RSI is too high, it means the stock price might go down because it has gone up too much. The three companies are Shell, Permian Resources, and VAALCO Energy. Read from source...
- The article does not provide any clear definition or explanation of what the RSI is and how it is calculated, which makes it difficult for readers to understand its relevance and validity as a momentum indicator.
- The article uses an outdated date (April 10, 2024) in both the title and the body, which creates confusion and inconsistency about when the information is relevant or current.
- The article does not provide any historical or statistical evidence to support its claim that a high RSI value predicts a stock crash, nor does it explain how it selected the three energy stocks mentioned as potential candidates for a crash based on their RSI values.
- The article focuses too much on the stock price and the 52-week high of Shell, without considering other important factors such as revenue, earnings, dividends, debt, growth prospects, etc., which could also affect the investment decision.
- The article uses vague and subjective terms such as "lower results", "warning", and "momentum" without defining or quantifying them, which makes it unclear what the author's opinion or agenda is.