Hot Money Monday: The most-in demand stocks on the ASX right now

Each Monday, Stockhead recaps which stocks are most heavily in demand by investors — running hot.

The analysis is based on 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 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.

Here’s this week’s list:

 

Running Hot

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

There were a total of 47 stocks with a 14-day RSI reading above 70, up from 45 in the week prior. Of those 47, 28 companies were new entrants (stocks highlighted in yellow).

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

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There was a new leader this week, as Freehill Mining (ASX:FHS) took top spot after rising sharply on the back of a drilling update at its fully-owned Yerbas Buenas magnetite project in Chile.

 

Running Cold

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

There were a total of 52 stocks with a 14-day RSI reading below, down from 70 in the week prior. And of those 52, 28 companies were new entrants (stocks highlighted in yellow).

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

WordPress Table
Falling onto the Running Cold list was department store chain Myer (ASX:MYR), which hasn’t posted an intra-day gain since February 4.

After being mired in a quagmire for years amid the the structural challenges facing Australia’s retail industry, the company faired well for most of 2019 as the market approved of new CEO John King’s turnaround strategy.

But momentum came to a halt in September, and Myer — which was listed in 2009 with a market cap of $4.2bn — is now valued at just $311m.