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, July 30:

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

Code Company Price RSI MktCap$
FAR FAR Ltd 1.34 85 $ 135,715,069
OKR Okapi Resources 0.455 84 $ 23,740,141
MXI MaxiTRANS Industries 0.705 83 $ 123,075,309
LEL Lithenergy 0.485 83 $ 20,925,000
AIB Aurora Glb Trust 0.165 81 $ 1,149,521
GRV Greenvale Mining Ltd 0.465 79 $ 191,063,241
DOR Doriemus PLC 0.26 79 $ 18,119,726
AXE Archer Materials 1.56 78 $ 359,776,343
LTR Liontown Resources 0.92 77 $ 1,604,583,378
FME Future Metals NL 0.225 75 $ 64,187,215
CNJ Conico Ltd 0.054 74 $ 55,898,390
LYC Lynas Rare Earths 7.415 74 $ 6,469,744,197
ATP Atlas Pearls Ltd 0.023 73 $ 6,845,948
POS Poseidon Nick Ltd 0.135 73 $ 379,271,005
JHC Japara Healthcare 1.3825 73 $ 368,801,313
CKA Cokal Ltd 0.1 72 $ 92,458,231
S66 Star Combo 0.375 71 $ 49,170,051
NMT Neometals Ltd 0.655 71 $ 334,509,602
CIA Champion Iron Ltd 7.745 71 $ 3,818,377,877
SMN Structural Monitoring 0.54 70 $ 57,247,779
AIS Aeris Resources Ltd 0.2225 70 $ 479,420,914
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Oil & gas explorer FAR Ltd (ASX:FAR) popped up on this week’s list, after a two-week period which saw it list on the ASX after being suspended since September.

Earlier this month, the company confirmed the sale of its interest in a Senegal-based oil project to Woodside (ASX:WPL), after FAR shareholders voted to complete the sale of its 13.67% stake.

“The final completion payment to FAR, after adjustments and remedying of FAR’s defaults under the joint operating agreement, was approximately US$126 million,” Woodside said.

“Additional payments of up to US$55 million are contingent on future commodity prices and timing of first oil.”

Uranium play Okapi Resources (ASX:OKR) also ran hot, following steady gains over a two-week period leading up to the release of its quarterly activity statement on Friday.

MaxiTrans (ASX:MXI) chalked up a two-week RSI of 83 after a busy period on the deal-making front, announcing the sale of its Trailer Solutions business to Australian Trailer Solutions Group (ATSG) for $30.257m, subject to shareholder approval.

The company said it’s also in advanced discussions to sell its Derrimut and Hallam sites to a third party for a cash consideration of $18.05m.

And shares in Lithium Energy (ASX:LEL) have rebounded to their highest level since the company listed in May. The company is developing its flagship Solaroz lithium brine project in Argentina along with the Burke graphite project in Queensland.
 

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, July 30:

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

Code Company Price RSI MktCap$
BKY Berkeley Energia Ltd 0.295 30 $ 75,104,751
OSX Osteopore Limited 0.37 30 $ 28,873,986
CAN Cann Group Ltd 0.2875 30 $ 86,216,857
CAQ CAQ Holdings Ltd 0.014 28 $ 10,049,008
CWN Crown Resorts Ltd 8.52 27 $ 5,945,449,619
OPY Openpay Group 1.135 27 $ 126,585,217
AGR Aguia Res Ltd 0.037 26 $ 12,012,928
MVP Medical Developments 3.71 26 $ 270,805,754
APV Appsvill 0.05 26 $ 4,613,062
AGL AGL Energy 7.23 25 $ 4,641,601,743
ICR Intelicare Holdings 0.145 25 $ 7,746,854
GMN Gold Mountain Ltd 0.021 22 $ 15,354,498
BUD Buddy Technologies 0.019 20 $ 62,402,181
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BNPL competitor OpenPay (ASX:OPY) was among the stocks running cold with a 14-day RSI of 27.

After trading above $2 until early May, the stock closed at 2021 lows of $1.13 on Friday. The company acquired a UK business in the June quarter and has flagged plans for a US launch.

In its 4C filing last week, OPY reported net operating cash outflows of $21.9m on cash receipts for the quarter of $95.9m.

We are putting the finishing touches on our launch into the US market, targeting go-live in our key Healthcare vertical in early October 2021,” CEO Michael Eidel said.

“This will present another major step forward for Openpay and the first of many very significant commercial opportunities for Opy USA.”