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 |
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 |
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.”