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

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Each Monday, Stockhead recaps the stocks most heavily in demand by 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, July 17:

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

There were over 150 stocks with an RSI above 70 so we have used a cut-off of 75 to reduce that number to the 50 hottest stocks.

The stock with the highest RSI is cybersecurity play Tesserent (ASX:TNT).

There has been significant hype about the ASX’s cybersecurity sector in light of remote working and the Morrison government’s recent investment. But Tesserent released its quarterly last week and it was a hit with investors.

Geospatial analytics company Pointerra (ASX:3DP) has continued to run hot since Australian tech entrepreneur Bevan Slattery invested $2.5m in the company a fortnight ago.

In light of face masks becoming mandatory in Melbourne, one small cap in the face mask trade, Harris Technology Group (ASX:HT8), has run hot in recent days.

Digital Wine Ventures (ASX:DW8) is also on the list as more wine sellers turn to its ecommerce platform to reach locked down customers.

In the gold sector, one hot runner was microcap gold play Traka Resources (ASX:TKL), which secured 100 per cent of the gold rights over Galaxy Resources’ (ASX:GXY) Mt Cattlin lithium and tantalum project.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, July 24:

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

This week there were only 17 stocks with an RSI below 30.

One was eye care stock Nova Eye Medical (ASX:EYE), which was previously known as Ellex.

The company sold its lasers and ultrasound business to European ophthalmology company Lumibird and is now focused on its iTrack procedure which treats mild to moderate glaucoma.

Last week the deal and return of capital took effect, resulting in the share price falling. Heavy selling activity followed.

Another on the running cold list is Victory Offices (ASX:VOL), which is one of the hardest hit by the rapid increase in working from home thanks to COVID-19.

While the company says it will emerge stronger than ever, it did have to raise $15 million last month and slash its casual workforce.

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