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 lookout for opportunities where the price action has separated from fundamentals.
Running Hot
Here are some of the ASX stocks that were running hot for the two weeks ended Friday, January 28:
Code Company Price RSI MktCap$ PH2 Pure Hydrogen Corp 0.475 87.8 $123,611,381 IEC Intra Energy Corp 0.022 80.48 $6,838,240 DM1 Desert Metals 0.55 78.102 $21,895,500 ARR American Rare Earths 0.355 78.06 $109,923,487 ASO Aston Minerals Ltd 0.175 77.95 $162,213,563 ADY Admiralty Resources. 0.0145 75 $16,946,529 AUQ Alara Resources Ltd 0.047 73.42 $30,333,457 PGO Pacgold 0.92 71.92 $32,605,425 PCL Pancontinental Energ 0.0035 71.02 $21,462,668 EEG Empire Energy Ltd 0.38 71.02 $226,467,506 VRX VRX Silica Ltd 0.165 70.59 $80,968,439
Sub-$10m nanocap Intra Energy Corp (ASX:IEC) made an appearance on the Hot Money list, courtesy of a sharp run up for its stock price to end the week.
IEC has benefited from its pivot away from coal, and it paired its existing copper-gold prospects with a shiny new nickel-copper-PGE project via an acquisition near Kalbarri, WA, called ‘Yalgarra’ last Friday.
Yalgarra sits near a number of other more advanced Ni-Cu-PGE projects in the area, and IEC said it plans to explore some of the promising geological formations at the site.
Also running hot this week was nickel-copper-cobalt play Aston Minerals (ASX:ASO), which has been climbing steadily since drilling results on January 19 confirmed strong nickel and cobalt mineralisation at the ‘Boomerang’ target within its Canada-based exploration project.
Chaired by mining luminary Tolga Kumova, ASO told investors to expect another round of drilling results from the project soon.
Running Cold
Here are some of the ASX stocks that were running hot for the two weeks ended Friday, January 28:
Code Company Price RSI Market Cap NXL Nuix Limited 1.4225 29.72 $439,480,990 AHI Adv Human Imag Ltd 0.55 28.79 $99,119,078 ADO Anteotech Ltd 0.24 27.57 $621,830,283 GSN Great Southern 0.045 26.58 $23,424,152 4DS 4DS Memory Limited 0.081 26.24 $117,213,062 HT8 Harris Technology 0.072 23.43 $22,334,661 SPN Sparc Tech Ltd 1.47 23.23 $88,004,270
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Analytics and intelligence software company Nuix (ASX:NXL) can’t take a trick, and at $1.38 the stock continues to sink further away from its $5.21 IPO price.
Shares in the company lost more ground this month, following a trading update where it flagged materially higher costs in the half year ending 31 December compared to the previous corresponding period.
And ecommerce stock Harris Technology (ASX:HT8) has been running cold, with falls exacerbated last week following the release of its latest 4C filing.
The company’s declining stock price reflects broader challenges in the sector, as a number of ASX ecommerce stocks battle logistical issues while struggling to maintain the booming 2020 growth rates seen in the immediate wake of the pandemic.