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Athabasca oil sands digger, Albian Sands, Alberta, Canada.
Athabasca oil sands digger, Albian Sands, Alberta, Canada.
(Dieter Blum/Shell)

Overbought and oversold: Energy goes from first to worst

A number of smaller energy companies have gone from first to worst in record time.

The S&P/TSX energy index spent the entire month of April above the 70 Relative Strength Index level that suggests stocks are overbought and set for a fall. The index has dropped 1.7 per cent from its early May peak, and many stocks in the sector have fallen from drastically overbought to oversold, making them potential candidates for a bounce.