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

Each Monday, Stockhead recaps the stocks that are running hot with investors.

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.

Running Hot

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 30:

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

Among the stocks running hot with a two-week RSI above 70 was Kleos Space (ASX:KSS), which is preparing for the launch of four of its radio frequency scouting nanosatellites on November 7.

But topping this week’s list was financial services nanocap BIR Financial (ASX:BIR), which has a market cap of just 2.36m.

A 100 per cent gain on Monday October 26 was enough for a red-hot reading on the RSI gauge for BIR, which typically trades with daily volumes of less than 50,000.

Running Cold

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, October 30:

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