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, January 21:

Code Company Price RSI MktCap$
AHK Ark Mines Limited 22.0% 72.99 $6,833,223
GL1 Globallith 162.0% 72.22 $245,017,033
BRN Brainchip Ltd 170.5% 77.77 $3,403,008,856
QXR Qx Resources Limited 4.4% 70.21 $29,847,942
CAV Carnavale Resources 1.6% 78.57 $29,162,764
AS2 Askarimetalslimited 38.5% 72.08 $11,820,060
DCX Discovex Res Ltd 1.1% 73.33 $28,255,305
CHR Charger Metals 80.5% 70.78 $28,347,466
ZAG Zuleika Gold Ltd 4.2% 78.57 $17,223,922
RNU Renascor Res Ltd 23.8% 75.00 $510,449,445
AZL Arizona Lithium Ltd 17.0% 74.63 $365,783,170
DM1 Desert Metals 44.5% 72.73 $17,118,300
ADO Anteotech Ltd 36.5% 83.87 $730,403,825
SFM Santa Fe Minerals 22.0% 73.91 $16,020,134
KFM Kingfisher Mining 31.0% 76.92 $11,643,300

Despite a sharp fall to end the week, Brainchip (ASX:BRN) still posted a 14-day RSI above 70 following its latest massive rally in January.

While BRN didn’t escape the broader unwind taking place across global markets, the ASX’s hottest AI chip technology developer still closed the week with a market cap north of $3bn.

Another stock that jumped onto the hot-money list was Zuleika Gold (ASX:ZAG), and not just because of the broader lift in gold stocks as market risk appetite wanes.

The junior explorer also got the thumbs-up from leading mining investor Mark Creasy, who tipped in $3m to fund drilling programs at ZAG’s gold projects in Kalgoorlie.

Surface management technologies company Anteotech (ASX:ADO) also ran hot, following steady gains on no news which have seen ADO’s share price more than double — from 16c to 37c — since the middle of December.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, January 21:

Code Company Price RSI Market Cap
AEF Australian Ethical 10.06 18.24 $1,218,276,576
ZBT Zebit Inc. 0.23 21.62 $21,766,099
DUB Dubber Corp Ltd 2.04 23.33 $663,181,068
SZL Sezzle Inc 2.3 24.32 $496,223,573
PME Pro Medicus Limited 45.43 25 $4,731,831,568
ABY Adore Beauty 3.27 25.32 $316,258,310
DVP Develop Global Ltd 3.2 25.93 $471,338,347
PCH Property Connect 0.0015 26.13 $1,028,795
CGS Cogstate Ltd 1.895 26.19 $402,137,195
KFE Kogi Iron Ltd 0.01 27.12 $13,175,778
ECG Ecargo Hldg 0.03 27.76 $18,457,500
RBL Redbubble Limited 2.06 28.82 $579,432,468

After reaching new all-time highs of almost $14 over the Christmas period, shares in ethical wealth management company Australian Ethical (ASX:AEF) have cooled off to start the year.

Shares in AEF fell on 11 of 14 trading days from January 4 to January 21, and a sharp +8% fall on Friday saw the stock fall back below $10 for the first time since September.