Each Monday, Stockhead recaps the ASX 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, December 18:

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

Code Company Price RSI MktCap$
EOL Energy One Limited 5.6 84 $ 140,143,304.40
ILU Iluka Resources 6.2 78 $ 2,570,439,660.48
LSR Lodestar Minerals 0.017 76 $ 13,644,831.90
RLC Reedy Lagoon Corp. 0.016 76 $ 6,576,272.98
MSM MSM Corporation Intl 0.056 73 $ 44,484,844.36
IHR intelliHR Limited 0.43 73 $ 106,736,357.04
TLT Tilt Renewables Ltd. 5.37 73 $ 1,903,011,114.20
XRO Xero Ltd 154.77 72 $ 22,586,718,770.00
2BE Tubi Limited 0.05 71 $ 15,826,779.05
VRL Village Roadshow Ltd 3 71 $ 585,901,737.00
C6C Copper Mountain 1.67 70 $ 31,040,534.22
LTR Liontown Resources 0.33 70 $ 578,607,381.76
RCL Readcloud 0.71 70 $ 81,338,960.19

 

For the first time in a while, this week’s Running Hot list took on a noticeably cooler tone as only 13 companies posted a 14-day RSI above 70 — down from 29 in the week prior.

One of the leader was market-darling Xero (ASX:XRO), which so far has posted gains on 11 out of 14 trading days in December.

The accounting software company’s latest rally has seen it climb from March lows of around $60 to close at new all-time highs above $155 on Friday.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, December 18:

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

Code Company Price RSI MktCap$
MEB Medibio Limited 0.008 29 $ 12,128,963.12
DEM De.Mem Ltd 0.235 29 $ 41,256,837.12
EM1 Emerge Gaming Ltd 0.076 28 $ 62,837,656.21
MAN Mandrake Res Ltd 0.076 28 $ 24,610,632.82
AC8 Auscann Grp Hlgs Ltd 0.175 28 $ 60,238,997.83
THR Thor Mining PLC 0.014 27 $ 6,220,078.70
JAN Janison Edu Group 0.505 26 $ 109,540,922.92
PF1 Pathfinder Resources 0.225 24 $ 11,685,184.65
CST Castile Resources 0.23 23 $ 46,931,878.44
NUC Nuchev Limited 0.985 23 $ 39,120,710.40
CPV Clearvue Technologie 0.285 23 $ 44,397,252.41
WRM White Rock Min Ltd 0.465 23 $ 39,259,097.82
ALG Ardentleisuregrpltd 0.62 23 $ 328,598,620.96
RGI Roto-Gro Intl Ltd 0.059 19 $ 14,374,659.75
SGH Slater & Gordon 0.8 18 $ 112,819,485.86
CF1 Complii Fintech Ltd 0.062 17 $ 14,763,066.50
HPR High Peak Royalties 0.067 15 $ 13,226,947.93
1ST 1St Group Ltd 0.033 9 $ 14,436,974.70