Hot Money Monday: Accent Resources is the most in-demand stock on the ASX right now

Mining minnow Accent Resources led 27 small caps with a 14-day RSI above 70 or above this week, a multi-week high and up from 23 in the week prior.

Each Monday, Stockhead recaps the ASX stocks that are running hot with investors.

The analysis is based on the Relative Strength Index (RSI), a technical gauge which measures how trading momentum is affecting the price action.

A reading of 70 is seen as the level at which a company may have been overbought. If a stock has a reading of 30 or below, it could be undervalued.

Click here for a more detailed rundown of what the RSI does and how it’s used.

While there’s usually a pretty good reason if a given stock is running hot (or cold), investors are also on the lookout for opportunities where the price action has separated from fundamentals.

Running Hot

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, December 4:

Scroll or swipe to reveal table. Click headings to sort.

There were 27 small caps with a 14-day RSI above 70 or above this week, a multi-week high and up from 23 in the week prior.

$3.26m mining minnow Accent Resources (ASX:ACS) has spent a fair chunk of 2020 in a trading halt.

Shares in the company jumped on December 2 after it announced the conversion of a convertible note by Rich Mark Development Group at 2c per share — a premium to ACS’ recent trading price of 1c.

The conversion will see Rich Mark’s shareholding in the company increase from 15.6 per cent to 67.2 per cent.

Energy nanocap Octanex (ASX:OXX) also ran hot over the past two weeks on the back of little-to-no news flow.

Two other companies posted a 14-day RSI above 90, generally considered to be ‘red-hot’.

Allegra Orthopaedics (ASX:AMT) ripped higher after announcing successful bench testing of its Spinal Cage device at the Kolling institute in the USA.

And shares in Creso Pharma (ASX:CPH) have risen more than 200pc over the past two weeks, after flagging strong growth into European markets for its anibidiol medicinal cannabis products.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, December 4:

Scroll or swipe to reveal table. Click headings to sort.