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 look out 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, June 4:

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

Code Company Price RSI MktCap$
SGI Stealth Global 0.115 87 $ 9,471,500.00
ING Inghams Group 3.815 82 $ 1,404,948,891.78
NHC New Hope Corporation 1.665 82 $ 1,390,036,326.94
ACW Actinogen Medical 0.135 80 $ 215,872,611.11
CD1 Cd Private Equity 1.24 79 $ 48,377,007.84
MEY Marenica Energy Ltd 0.365 79 $ 74,833,725.96
IRD Iron Road Ltd 0.35 78 $ 261,452,162.40
8VI 8Vi Holdings Limited 2.9 78 $ 123,571,056.46
PTX Prescient Ltd 0.15 77 $ 83,271,891.30
MTC Metalstech Ltd 0.235 77 $ 36,916,233.12
ASM Ausstratmaterials 5.55 76 $ 746,357,132.10
VAR Variscan Mines Ltd 0.082 75 $ 15,334,705.73
SYA Sayona Mining Ltd 0.055 75 $ 256,394,924.26
STA Strandline Res Ltd 0.245 75 $ 262,302,899.02
DM1 Desert Metals 0.855 74 $ 29,750,000.00
BFC Beston Global Ltd 0.1 74 $ 84,267,440.80
AGE Alligator Energy 0.042 73 $ 101,665,475.68
MZZ Matador Mining Ltd 0.54 73 $ 99,145,244.59
PGC Paragon Care Limited 0.305 73 $ 101,365,587.60
MSR Manas Res Ltd 0.012 72 $ 36,471,859.58
PDI Predictive Disc Ltd 0.105 72 $ 139,534,093.05
POS Poseidon Nick Ltd 0.08 71 $ 216,324,943.60
PO3 Purifloh Ltd 1.9 70 $ 50,437,596.80
FTZ Fertoz Ltd 0.059 70 $ 10,494,423.27
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Appearing at the top of this week’s Running Hot list was industrial distribution company Stealth Global (ASX:SGI).

The catalyst was some deal news late last week, when SGI announced it would purchase the business assets of WA-based Skipper Transport Parts for $4.2m.

Investors have rewarded SGI for its recent M&A activity, as the stock also rose last November following its acquisition of Brisbane-based tool supplier C&L for $3.8m.

Also making a rare appearance on the list was chicken company Inghams Group (ASX:ING), which has been climbing steadily since late May after the company upgraded its earnings guidance, citing an improvement in general trading conditions as COVID-19 restrictions are wound back.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, June 4:

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

Code Company Price RSI MktCap$
GCY Gascoyne Res Ltd 0.45 30 $ 135,463,389.12
OIL Optiscan Imaging 0.29 30 $ 187,928,983.61
XAM Xanadu Mines Ltd 0.047 30 $ 60,269,652.00
OVT Ovato Limited 0.004 30 $ 54,957,655.13
VMG VDM Group Limited 0.002 30 $ 17,319,152.38
GTE Great Western Exp. 0.13 30 $ 19,067,728.54
BLY Boart Longyear 0.3225 30 $ 30,536,571.00
PEX Peel Mining Limited 0.29 29 $ 125,429,327.10
NXL Nuix Limited 2.62 28 $ 853,576,795.86
GML Gateway Mining 0.02 27 $ 41,879,983.20
AYM Australia United Min 0.007 25 $ 12,898,042.40
SIT Site Group Int Ltd 0.013 25 $ 10,936,186.65
NZK NZK Salmon Ltd 1.355 22 $ 208,478,452.50
ATU Atrum Coal Ltd 0.04 17 $ 23,277,266.12
OSL Oncosil Medical 0.063 16 $ 51,827,314.11
AFA ASF Group Limited 0.07 14 $ 55,490,840.23
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