Top 3 Energy Stocks That May Crash In August - NGL Energy Partners (NYSE:NGL), Enerflex (NYSE:EFXT)
As of Aug. 18, 2025, three 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 ...
How this was made
The 30-second read
Why it matters
The signal indicates possible short-term volatility in EFXT and NGL but is not supported by detailed fundamental catalysts in the source. Traders should treat this as a cautionary momentum setup rather than a guaranteed decline.
Market read
Near-term trading idea with potential for volatility; consider correlation with WTI movements and sector sentiment; limited to momentum signals without strong fundamentals.
What to watch
Fundamental catalysts such as refinery margins, LNG/NGL demand, fuel inventory data, and company-specific updates (earnings, guidance) could override momentum indicators. Liquidity, option activity, and sector rotation dynamics can also influence short-term outcomes.
Background
The Benzinga article flags RSI-based momentum concerns as a potential warning for three energy names, including EFXT and NGL, suggesting a possible near-term decline in August.
Ticker impact
Moderate relevance given energy sector context and momentum-based caution highlighted in the article.
Possible -3% to -7% price movement within 1-2 weeks if momentum continues; upside risk exists if RSI recovers and price breaks higher.
RSI momentum signals can precede short-term moves, but the article provides no fundamental catalysts. Price targets are not given; outcomes depend on broader market energy momentum and volume confirmation.
Moderate relevance; energy sector exposure with a RSI-based caution featured in the article.
Possible -3% to -7% over 1-2 weeks if momentum continues; potential reversal if RSI improves and price action strengthens.
Similarity to EFXT in relying on RSI momentum signals; no new catalysts provided; sector-wide signals and liquidity should be monitored.
Market effects
Potential near-term volatility in energy equipment & services and midstream energy stocks; could influence adjacent names with similar price dynamics and higher beta.
Limited to US-listed names; possible spillover to related sectors if broad energy momentum shifts or if ETF flows respond to the signals.
Low; primarily a US-focused, momentum-driven note without broad global catalysts.
Counterpoint
Momentum-based warnings can overstate near-term risk if broader energy demand improves or if RSI rebounds with increasing volume. A bullish case would rely on improving sector fundamentals, favorable macro energy trends, or positive company-specific catalysts.
Key entities
- CompanyEnerflex Ltd
Energy technology and service provider; equipment manufacturing and services for the energy sector.
- CompanyNGL Energy Partners Corp
Midstream energy company focusing on crude oil and natural gas liquids transportation, storage, and marketing.
