In the event you’ve been hiding under a rock (a possibility in NSW) or not reading Stockhead (inexcusable), you might not know about the latest lithium frenzy on the ASX.

But if you hadn’t been doing those things, it would come as little surprise to see the Running Hot list heavily populated by lithium stocks for the second straight week.

This week, Charger Metals (ASX:CHR) led the pack following a furious August rally that has seen it gain more than 200%.

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 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, August 13:

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

Charger booked its place at the top of this week’s list with a 14-day RSI of 88 after posting double-digit percentage gains on six out of seven trading days to start the month.

The company has made a roaring start to listed life, since joining the ASX boards in July. Later that month, it uncovered a new lithium target at its Lake Johnston project in WA.

And the stock has been ripping higher after announcing on August 4 that New York investment group Lind Partners had become a substantial holder in the business.

Hot on Charger’s heels was fellow lithium play Sayona Mining (ASX:SYA), while metallurgical coal play Cokal (ASX:CKA) has made consistent appearances on the Running Hot list in FY22, with the stock up more than 100% so far this financial year.

Outside of resources and the red-hot lithium space, there was an appearance by semiconductor company Archer Materials (ASX:ARC), which has had a big week after securing patent approval for its CQ qubit (quantum-bit) computing chip technology in both China and South Korea.

After opening on Monday at $1.52, ARC shares closed the week above $2.30 after trading in the 70-80c range through May and June.
 

Running Cold

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, August 13:

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

Among the stocks running cold was Australia’s secondary stock exchange, the NSX (ASX:NSX), which rose from 10c to almost 40c last November but has since given back all of those gains.

On Friday, the company announced that former ACCC boss Graeme Samuel had resigned as a director. The resignation comes four months after Samuel was appointed with the expectation that he would assume the role of company chairman.