Top 2 Energy Stocks That May Fall Off A Cliff in June

As of June 13, 2025, Matador Resources (MTDR) and TotalEnergies SE (TTE) are signaling overbought conditions based on their Relative Strength Index (RSI) values of 70.8 and 70.4, respectively. MTDR shares closed up 1% at $49.50 on Thursday, following a 9% jump over the past five days, while TTE shares closed up 1.6% at $63.07 after a 7% gain over the same period; investors should note TotalEnergies' recent Q1 EPS miss and anticipated impact from planned maintenance on Q2 hydrocarbon production.

Analysis

As of June 13, 2025, technical indicators suggest caution for two energy sector stocks, Matador Resources (MTDR) and TotalEnergies SE (TTE), both exhibiting overbought conditions with Relative Strength Index (RSI) values above 70. Matador Resources, with an RSI of 70.8, saw its stock jump approximately 9% over the past five days, closing at $49.50 on Thursday; this price appreciation followed the promotion of William Lambert to EVP, CFO, and Head of Strategy on June 12. Despite the overbought RSI and recent price surge, MTDR's Edge Stock Rating indicates a low Momentum score of 23.17, contrasted by a high Value score of 90.25. TotalEnergies SE presents an RSI of 70.4 after its stock gained around 7% over the past five days, closing at $63.07. This technical warning for TTE is compounded by fundamental concerns: the company reported a 15% year-over-year decline in first-quarter adjusted EPS to $1.83, missing consensus estimates, and anticipates a 2% to 3% year-over-year decrease in second-quarter hydrocarbon production due to planned maintenance, with an expected average LNG selling price between $9 and $9.5/Mbtu. The overall sentiment conveyed is mixed and cautious, with MTDR showing a positive individual sentiment despite the overbought signal, while TTE's negative sentiment aligns with its weaker earnings and outlook.

Key Decisions for Investors

• Investors should note the overbought RSI of 70.8 for Matador Resources (MTDR); while the recent 9% rally and strategic CFO appointment are notable, the low Edge Momentum score of 23.17 suggests the rally may not be sustained, though its high Value score of 90.25 could attract value-oriented investors after a potential price consolidation.
• For TotalEnergies (TTE), the overbought RSI of 70.4, combined with a Q1 earnings miss, negative company sentiment, and anticipated Q2 production headwinds, signals a heightened risk of a near-term price correction; thus, caution is advised, and upcoming production figures and LNG price developments should be closely monitored.
• Momentum-focused investors should be particularly wary of these overbought conditions in both MTDR and TTE, as such RSI levels often precede short-term pullbacks, necessitating a re-evaluation of entry or exit points based on individual risk tolerance and confirmation from other indicators.