Each week, Stockhead recaps ASX stocks that are “running hot” as deduced by the Relative Strength Index (RSI).

The RSI is 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 look out 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, June 25:

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

Scaffolding & painting company Oldfields (ASX:OLH) hasn’t had much news of note recently, but a strong gain on Friday was good enough for it to register a 14-day RSI of 96 (which is red-hot) and top this week’s list.

Future Metals (ASX:FME) also ran hot after re-listing on the ASX with the purchase of the 23sqkm ‘Panton’ platinum group metals (ASX:PGM) project in the Kimberly region of WA.

And another notable company near the top of this week’s list was BNPL leader Afterpay (ASX:APT), which stood out with a market cap north of $37bn after its share price climbed back above $130 this week.

APT has fluctuated this year amid changes to the outlook for bond yields and inflation, but after hitting a low of $84.50 on May 13 the stock has since gained by more than 50 per cent.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, June 25:

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