Each Monday, Stockhead recaps the ASX stocks that are the heaviest bought (in other words 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 being overbought or sold (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$
AVZ AVZ Minerals Ltd 0.19 83 $ 487,474,746.36
GWR GWR Group Ltd 0.43 86 $ 119,176,426.44
PNN PepinNini Minerals 0.375 76 $ 13,123,035.79
CXO Core Lithium 0.11 84 $ 96,789,541.14
ORM Orion Metals Ltd 0.02 72 $ 10,901,948.86
EMR Emerald Res NL 0.86 73 $ 438,087,625.95
EMH European Metals Hldg 1.14 85 $ 127,322,685.25
NMT Neometals Ltd 0.29 74 $ 152,698,354.48
AL8 Alderan Resource Ltd 0.12 73 $ 34,263,225.58
VRX VRX Silica Ltd 0.335 74 $ 165,681,492.57
COB Cobalt Blue Ltd 0.165 77 $ 41,347,713.99
TI1 Tombador Iron 0.062 72 $ 46,701,531.50
G1A Galena Mining 0.295 79 $ 136,247,329.14
ORE Orocobre Limited 4.57 71 $ 1,551,636,437.56
SGM Sims Limited 13.52 79 $ 2,683,508,458.68
MLX Metals X Limited 0.14 75 $ 127,017,249.38
MIN Mineral Resources. 37.28 76 $ 6,934,730,111.77
PRS Prospech Limited 0.2 72 $ 13,004,117.80
GOR Gold Road Res Ltd 1.3 72 $ 1,121,904,053.70
GNG Gr Engineering Ltd 1.21 72 $ 187,735,358.69
RAG Ragnar Metals Ltd 0.011 74 $ 3,447,664.68
EOL Energy One Limited 6.2 78 $ 159,034,826.72
AHY Asaleo Care Limited 1.37 76 $ 749,509,037.58
NXE New Energy Minerals 0.027 72 $ 4,980,733.77
ARC Aust Rural Cap Ltd 0.004 78 $ 5,178,496.00
TML Timah Resources Ltd 0.08 97 $ 7,335,542.00
TPP Tempo Australia 0.061 75 $ 22,120,765.74

 

The majority of most-bought ASX stocks were resources stocks. One was lithium explorer AVZ Minerals (ASX:AVZ) which has a project in the Democratic Republic of the Congo.

On Christmas Eve, the company announced it had secured its first offtake partner in Ganfeng Lithium subsidiary GFL International.

Another was mineral sands play VRX Silica (ASX:VRX) which is eyeing the commencement of construction at its Arrowsmith project in WA.

One of the few non-resources stocks running hot was Asaleo Care Limited (ASX:AHY). It is no stranger to this list in recent times having recently received an on-binding takeover proposal from Sweden-based Essity AB.

Last week it announced an acquisition of its own in TOM Organic which it will pay $12.75 million for.

 

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 Market Cap
CUE CUE Energy Resource 0.091 28 $ 63,528,894.52
AVE Avecho Biotech Ltd 0.03 62 $ 43,170,156.36
TMX Terrain Minerals 0.009 30 $ 6,621,849.08
GES Genesis Resources 0.011 16 $ 8,611,254.23
PO3 Purifloh Ltd 1.43 25 $ 46,339,542.06
IRI Integrated Research 2.63 27 $ 451,097,852.86
DGR DGR Global Ltd 0.065 29 $ 66,339,353.44
S2R S2 Resources 0.13 30 $ 40,935,853.27
CF1 Complii Fintech Ltd 0.057 4 $ 12,917,683.18
SEG Sports Ent Grp Ltd 0.225 16 $ 51,997,737.60
COH Cochlear Limited 190.91 28 $ 12,619,791,512.92
CRM Carbon Minerals Ltd 0.38 29 $ 7,145,327.34

 

Cue Energy (ASX:CUE) has been heavily sold in the last few days after disappointing exploration results at its Ironbark oil well.

Software stock Integrated Research (ASX:IRI) has also been heavily sold after a company update where it slashed forward revenue and profit estimates.