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 2:

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

A notable name on this week’s Hot Money list was small business lending platform Prospa (ASX: PGL), which posted at 14-day RSI of 81 following a six-day winning streak.

The gains saw Prospa shares close at $1.12 on no recent news, after trading in a range below $1 since last November.

However the stock has plenty of work today to make up ground from its 2019 IPO, when it raised $110m from investors at $3.78 per share.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, July 2:

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