Funds management administration company Mainstream Group (ASX:MAI) topped the Running Hot list with a 14-day RSI of 92 this week.

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, April 30:

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

Mainstream Group is in demand, and with good reason.

The stock appeared near the top of the Hot Money list two weeks ago, following a bid by investment management software company SS&C.

The funds services company — which provides administration services to more than 1,300 funds globally — confirmed that a $2.55 per share offer from Apex Group was superior to a previous offer it had provisionally accepted from SS&C Solutions Pty Ltd.

MAI is now in the enviable position of putting the ball back in SS&C’s court, having set out a deadline of May 6 for SS&C to match or exceed the offer.

Running Cold

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

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