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.