Hot Money Monday: The most in-demand stocks on the ASX right now
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Each Monday, Stockhead recaps which stocks are heavily demanded by investors – or running hot.
Stockhead uses the Relative Strength Index (RSI), 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 the first edition of Hot Money, which includes a more detailed description of what the RSI does and how it’s used.
Here is this week’s list:
Stavely Minerals’ (ASX: SVY) monstrous copper discovery (with a grade of 40 per cent) made it the hottest stock in recent days. It has an RSI of 94 and it has more than quadrupled since the announcement.
After IODM (ASX: IOD) revealed Western Union as its major partner, investors have rushed to buy the stock.
This time last year Bionomics (ASX: BNO) was running cold after a failed clinical trial. But earlier this year it revealed it wasn’t their fault – some patients did not follow the instructions; and last week it announced it will do it again.
As Ian Gandel closes in on acquiring all of Alliance Resources (ASX: AGS), the stock has made it onto the running hot list.
The majority of stocks running cold had nothing new in recent days but have continued to be plagued by bad news a matter of weeks ago.
Australian Pacific Coal (ASX: AQC) has continued to run cold ever since it was denied a mine life extension by the NSW government three weeks ago.
Amaysim (ASX: AYS) has continued to be sold off after disappointing annual results.
One stock hit by bad news last week was ARQ Group (ASX: ARQ) which announced its CEO had quit and downgraded its earnings due to market conditions.