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

Bitcoin proxy

Digital assets are just about everywhere at the moment, so it’s perhaps no surprise to see them popping up on this week’s Running Hot list.

AXP Energy (ASX:AXP) ran hot after coming out of suspension and inking a deal to provide natural gas to a US crypto mining operation, while BTC owner DigitalX (ASX:DCC) traded as something of a Bitcoin proxy with strong gains in October.
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What’s the 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 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, October 22:

Code Company Price RSI MktCap$
AXP AXP Energy Ltd 0.0155 89 $ 65,499,175.28
CZL Cons Zinc Ltd 0.063 88 $ 12,355,670.33
AOP Apollo Consolidated 0.59 88 $ 172,056,148.10
AZL Arizona Lithium Ltd 0.073 86 $ 115,258,853.40
CAE Cannindah Resources 0.2325 84 $ 121,937,265.54
CL1 Class Limited 2.98 83 $ 354,606,849.60
TRU Truscreen 0.082 82 $ 29,029,300.24
APC Aust Potash Ltd 0.135 81 $ 84,489,640.04
TNG TNG Limited 0.11 81 $ 131,197,189.20
DTI DTI Group Ltd 0.026 81 $ 11,612,526.67
PVW PVW Res Ltd 0.455 80 $ 34,635,937.50
LKE Lake Resources 0.855 80 $ 916,820,367.54
LDR Lode Resources 0.345 79 $ 12,218,274.68
CXM Centrex Metals 0.11 78 $ 45,925,386.25
DCC Digitalx Limited 0.105 77 $ 77,665,943.99
QXR Qx Resources Limited 0.028 76 $ 13,993,608.74
MNB Minbos Resources Ltd 0.19 75 $ 90,681,414.92
STM Sunstone Metals Ltd 0.068 74 $ 145,859,184.64
LV1 Live Verdure Ltd 0.45 73 $ 16,641,235.20
BEZ Besragoldinc 0.14 73 $ 27,495,993.60
TOR Torque Met 0.29 72 $ 13,509,841.54
MR1 Montem Resources 0.081 71 $ 15,522,915.72
GGE Grand Gulf Energy 0.045 71 $ 50,892,627.55
A8G Australasian Gold 0.71 71 $ 28,594,460.62
PGY Pilot Energy Ltd 0.075 70 $ 34,610,517.37
AEV Avenira Limited 0.012 70 $ 10,354,233.82

 

$65m oil & gas play AXP Energy (ASX:AXP) was the beneficiary of a judicial decision by the WA Supreme Court, which allowed it to recommence trading on the ASX.

A couple of months earlier, the ASX had “drawn the company’s attention to” possible breaches of the secondary trading provisions of the Corporations Act (Cth) 2001.

Specifically, AXP had neglected to lodge the requisite compliance notices for various share issues, going all the way back to 2013.

While AXP was away, energy prices surged. It also inked a binding Heads of Agreement in September with US-based Elite Mining Inc to deliver on-site power generation using “stranded natural gas from AXP’s Colorado leases, for use in EMI’s cryptocurrency mining operations”.

On Friday, AXP released its 4C filing for September where it flagged its first quarter of net positive operating cashflows, booking net cash of $1.178m on cash receipts of $5.03m.

Mexico-based zinc producer Consolidated Zinc (ASX:CZL) also ran hot and with good reason, after booking an off-take deal to sell zinc concentrate to one of the world’s largest zinc refineries.

Industrias Penoles will buy all of CZL’s zinc concentrates for the next 12 months, with the option of another year.

Elsewhere on the Running Hot list, crypto-adjacent regtech company DigitalX (ASX:DCC) made an appearance with a 14-day RSI of 77.

DCC holds 216 Bitcoin on its balance sheet and operates crypto-related funds management services, along with its Drawbridge compliance platform for ASX director trades.

With its Bitcoin holdings, DCC spiked last November as BTC made its first consolidated move above the US$10,000 range, as the only ASX stock giving investors exposure as a Bitcoin proxy.

And with BTC again re-testing new all-time highs, shares in DCC closed at 10c on Friday — up 58% in October month-to-date.
 

Running Cold

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 22:

Code Company Price RSI Market Cap
PCH Property Connect 0.0015 30 $ 1,028,795.21
STX Strike Energy Ltd 0.175 30 $ 354,085,159.05
CNJ Conico Ltd 0.037 30 $ 37,007,950.34
AJQ Armour Energy Ltd 0.022 30 $ 41,061,831.25
SE1 Sensera Ltd 0.0165 29 $ 6,623,943.09
PBX Pacific Bauxite Ltd 0.003 28 $ 1,189,842.10
OEQ Orion Equities 0.235 28 $ 3,677,568.58
W2V Way2Vatltd 0.195 28 $ 26,155,810.40
OLH Oldfields Holdings 0.06 27 $ 10,062,391.62
ZBT Zebit Inc. 0.51 24 $ 47,304,352.00
FEL Fe Limited 0.035 23 $ 31,000,045.14
XTE Xtek Limited 0.2 20 $ 20,762,399.37
MHI Merchant House 0.1 15 $ 12,254,644.48
AJY Asaplus Resources 0.04 13 $ 5,440,000.00