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

Each Monday, Stockhead recaps which stocks are most heavily in demand by investors — running hot.

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.

Here’s this week’s list:

Running Hot

There were some new names up the top of this week’s list, including water treatment company Waterco (ASX:WAT) which heated up with a reading of 83.51.

Waterco, which has been listed on the ASX since 1989, provides treatment solutions for different environments including private swimming pools through to industrial applications.

2019 has been a topsy turvy year for the company, which fell from around $2.40 in April and slumped sharply again in April before regaining momentum. Aside from a series of daily share buybacks, the stock has had no news in recent weeks but continues to push back towards January highs.

Takeover target Konekt (ASX:KKT) topped this week’s list, after receiving a new and improved all-cash offer from suitor Advanced Personnel Management International, this time valuing the workplace health solutions platform at 64c per share.

And despite the well-documented structural headwinds facing Australia’s retail sector, one listed player in the space has bucked the trend.

Shares in discount retailer The Reject Shop (ASX:TRS) have climbed steadily in recent weeks, and are now up by around 40 per cent from September lows.

The stock gained momentum in the wake of a mid-October trading update, when it said comparable same-store sales growth was up 0.3 per cent in FY20, a turnaround from -2.5 per cent in the second half of the 2019 financial year.

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, November 8:

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

Running Cold

The stocks that were running cold for the two weeks ended Friday, November 8:

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