The relative strength index (RSI) is an important technical indicator for stock traders.

It helps measure how actions of the “herd” may drive the stock of a given company up or down — moves which may not always be in line with the company’s fundamentals.

For a detailed description of how it works, click here.

Each week, Stockhead provides a simple summary of outliers on the RSI, to get a technical gauge of how trading momentum is affecting the price action.

A reading of 70 is seen as the level at which a company’s been overbought. If a stock has a reading of 30 or below, it may be undervalued. Here’s this week’s list:

Running hot

Over the past two weeks, 29 companies recorded an RSI reading of at least 75.

This time around, a couple of mining companies surged to the front in the wake of some recent M&A activity.

Bligh Resources (ASX: BGH) had the hottest RSI measure with a reading of 91. That was no-doubt driven by Friday’s surge, when the company announced Saracen (ASX:SAR) had made an off-market takeover bid valuing the junior gold explorer at 12.8c per share – a 97 per cent premium to Bligh’s last closing share price.

Another stock strongly in demand was Marquee Resources (ASX:MQR), which announced it had acquired a company in the lithium-rich Centenario Salar region of Northern Argentina.

As part of the deal the shareholders of the target company — Centenario Lithium — agreed to tip in no less than $500,000 in a capital raise at 10 cents per share; a significant premium to MQR’s last traded price.

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, June 14:

Code Name RSI - 2 weeks Price ($) Market Cap
BGH BLIGH RESOURCES LTD 91.022 0.145 $22,463,644
MQR MARQUEE RESOURCES LIMITED 89.0578 0.135 $3,718,753
DTL DATA#3 LTD 87.9784 2.14 $323,347,392
JRL JINDALEE RESOURCES LTD 85.6371 0.425 $12,248,171
LIC LIFESTYLE COMMUNITIES LTD 85.1241 6.6 $679,543,360
CUP COUNTPLUS LTD 83.1277 0.75 $75,958,000
CLA CELSIUS RESOURCES LTD 81.9078 0.064 $43,918,648
BCB BOWEN COKING COAL LTD 81.7613 0.04 $24,674,730
NCM NEWCREST MINING LTD 80.5133 30.12 $22,477,905,920
APC AUSTRALIAN POTASH LTD 80.2274 0.1 $35,042,160
VRT VIRTUS HEALTH LTD 79.5826 4.49 $354,513,248
EML EML PAYMENTS LTD 79.3954 2.89 $727,765,440
MCX MARINER CORP LTD 79.326 0.047 $645,690
GMA GENWORTH MORTGAGE INSURANCE 79.2189 2.84 $1,172,988,032
AST AUSNET SERVICES 78.778 1.945 $6,903,535,616
SO5 SALT LAKE POTASH LTD 78.7269 0.8 $149,054,816
SVM SOVEREIGN METALS LTD 78.5794 0.12 $41,316,472
MVF MONASH IVF GROUP LTD 78.3949 1.34 $313,595,232
M7T MACH7 TECHNOLOGIES LTD 78.0196 0.45 $69,002,624
TLS TELSTRA CORP LTD 77.6903 3.87 $45,670,264,832
REF REVERSE CORP LTD 77.5319 0.041 $3,714,423
MML MEDUSA MINING LTD 76.7825 0.495 $100,780,232
KTE K2 ENERGY LTD 76.553 0.011 $3,006,572
TBR TRIBUNE RESOURCES LTD 76.5405 4.8 $259,754,144
IHL IMPRESSION HEALTHCARE LTD 76.3485 0.03 $15,711,220
CUE CUE ENERGY RESOURCES LTD 76.3482 0.08 $51,660,860
DLX DULUXGROUP LTD 76.2182 9.75 $3,795,190,016
RND RAND MINING LTD 76.005 3.1 $186,460,272
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Running cold

On the other end of the spectrum, there was a longer list of stocks running cold this week with 43 companies recording an RSI of 25 or below.

Investment advisory company Evans Dixon (ASX: ED2) recorded an RSI reading of just 7.96 — the lowest measure since the launch of our Hot Money section.

The embattled firm closed the week at just 79.5 per cent — a 70 per cent decline from last year’s listing price of $2.50.

With its business model under increased scrutiny, Alan Dixon stepped down as CEO on Wednesday to devote more resources towards the company’s struggling residential property fund in the US.

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, June 14:

Code Name RSI - 2 weeks Price ($) Market Cap
ED2 EVANS DIXON LTD 7.9603 0.795 $186,959,808
SUR SUN RESOURCES NL 10.1774 0.001 $881,058
GTN GTN LTD 15.896 1 $228,480,016
DCN DACIAN GOLD LTD 15.9285 0.445 $102,699,600
LHB LIONHUB GROUP LTD 16.8102 0.005 $4,131,749
LMW LANDMARK WHITE LTD 17.0155 0.18 $15,324,140
ANR ANATARA LIFESCIENCES LTD 17.9666 0.2 $17,294,632
BLT BENITEC BIOPHARMA LTD 18.0933 0.06 $16,449,883
VRL VILLAGE ROADSHOW LTD 18.4405 2.82 $545,747,072
LAA LATAM AUTOS LTD 18.5731 0.058 $26,361,490
ACW ACTINOGEN MEDICAL LTD 19.1593 0.009 $10,073,082
WLD WELLARD LTD 19.2074 0.026 $14,875,009
LNK LINK ADMINISTRATION HOLDINGS 20.7947 5.59 $2,990,123,520
XAM XANADU MINES LTD 20.8471 0.061 $39,530,692
TTT TITOMIC LTD 20.9667 1.7 $219,114,832
KAM K2 ASSET MANAGEMENT HOLDINGS 21.2839 0.05 $12,054,260
NXE NEW ENERGY MINERALS LTD 21.6671 0.019 $3,168,804
ALG ARDENT LEISURE GROUP LTD 21.8196 1.055 $537,270,720
VTG VITA GROUP LTD 21.8339 1.18 $191,295,376
CGF CHALLENGER LTD 21.8953 6.5 $4,250,596,608
REG REGIS HEALTHCARE LTD 22.2165 2.57 $787,712,640
TIP TEAMINVEST PRIVATE GROUP LTD 22.2222 0.75 $85,505,952
PEX PEEL MINING LTD 22.4433 0.305 $67,146,656
SEA SUNDANCE ENERGY AUSTRALIA LT 22.8424 0.23 $161,553,648
RGI ROTO-GRO INTERNATIONAL LTD 22.9463 0.15 $20,130,762
LIT LITHIUM AUSTRALI-PARTLY PAID 23.2423 0.006 $31,268,278
RHI RED HILL IRON LTD 23.4245 0.16 $9,279,099
BNO BIONOMICS LTD 23.4625 0.063 $34,315,208
LIT LITHIUM AUSTRALIA NL 23.4876 0.063 $31,268,278
XST XSTATE RESOURCES LTD 23.5385 0.002 $2,280,982
ARQ ARQ GROUP LTD 23.6084 1.37 $167,930,288
GDG GENERATION DEVELOPMENT GROUP 23.6114 0.49 $62,644,936
OLV OTHERLEVELS HOLDINGS LIMITED 23.6225 0.011 $3,155,256
TRT TODD RIVER RESOURCES LTD 23.9488 0.04 $6,815,171
FIN FIN RESOURCES LTD 24.0692 0.01 $3,791,989
MOY MILLENNIUM MINERALS LTD 24.1352 0.059 $53,471,192
TGA THORN GROUP LTD 24.149 0.325 $51,576,020
UUL ULTIMA UNITED LTD 24.3296 0.023 $674,492
TPC TPC CONSOLIDATED LTD 24.4601 0.6 $6,741,368
SGR STAR ENTERTAINMENT GRP LTD/T 24.8585 3.82 $3,504,172,800
ICU ISENTRIC LTD 24.8654 0.006 $1,101,930
MYL MYANMAR METALS LTD 24.9902 0.06 $97,806,544
TPP TEMPO AUSTRALIA LTD 24.992 0.07 $16,374,712
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