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

Stockhead’s Hot Money Monday 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 look-out 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, March 26:

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

A eclectic group of stocks spanning tech, medtech, energy and resources populated this week’s Hot Money list.

A total of 27 stocks posted a 14-day RSI above 70, up slightly from 25 last week.

Leading the pack was Digital Wine Ventures (ASX:DW8), which ran hot with a print of 87. After climbing steadily in March, DW8 shares popped on Friday when the company announced its fully-owned subsidiary, Wine Depot Pty Ltd, had signed a distribution partnership with eBay.

Also near the top of the list was junior coal explorer Jameson Resources (ASX:JAL), which recorded a hot RSI reading of 85 despite no major news flow or big share price leaps in March.

And rounding out the top three was US-based oil and gas explorer 88 Energy (ASX:88E). Shares in the company have tripled in March to 3c despite no major news flow.

On March 15, 88E answered a price query from the ASX by saying it wasn’t aware of any information that would prompt such a sharp gain after the stock jumped more than 60 per cent.

Running Cold

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, March 26:

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