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 was a new leader on the Hot Money list, as timber products company Big River Industries (ASX:BRI) ran hot with an RSI reading of 81.18.

The stock hasn’t had any market-moving news of note lately, but BRI shares have been building momentum in the second half of the year after bottoming out below $1 in June off the back of a lacklustre December-half trading update.

And cleaning and security contractor Millennium Services Group (ASX:MIL) also ran hot, after announcing it had secured new long-term contracts with two major customers — including an ASX-listed retailer — with a combined value of $118m.

Millennium Services listed on the ASX in 2015 at $2.25 per share, but traded for most of 2019 at 20c before its recent rally.

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, December 6:

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

Code Name Price 2 Week RSI Market Cap
BRI BIG RIVER INDUSTRIES LTD 1.36 81.18 84.96M
MIL MILLENNIUM SERVICES GROUP LTD 0.5 80.92 22.73M
ADH ADAIRS LTD 2.28 79.75 378.19M
APD APN PROPERTY GROUP LTD 0.61 79.19 192.40M
KKT KONEKT LTD 0.7 77.55 74.05M
ICS ICSGLOBAL LTD 1.99 76.57 21.10M
NTM NTM GOLD LTD 0.07 76.3 43.12M
SNL SUPPLY NETWORK LTD 4.47 76.07 182.20M
ADD ADAVALE RESOURCES LTD 0.02 75.98 3.08M
EGI ELLERSTON GLOBAL INVESTMENTS 1.13 75.9 123.87M
VR1 VECTION TECHNOLOGIES LTD 0.03 75.62 16.43M
CSV CSG LTD 0.31 75.39 137.02M
MHI MERCHANT HOUSE INTL LTD 0.12 74.76 10.84M
IGL IVE GROUP LTD 2.27 74.68 336.43M
OLH OLDFIELDS HOLDINGS LTD 0.09 74.48 7.31M
RHT RESONANCE HEALTH LTD 0.22 74.48 94.13M
CGO CPT GLOBAL LIMITED 0.28 74.37 10.91M
ECL EXCELSIOR CAPITAL LTD 1.44 74.21 41.75M
EGH EUREKA GROUP HOLDINGS LTD 0.34 74.11 79.36M
KSL KINA SECURITIES LTD 1.53 73.58 250.91M
MCX MARINER CORP LTD 0.06 73.39 3.12M
CYL CATALYST METALS LTD 3.16 73.29 260.36M
PTX PRESCIENT THERAPEUTICS LTD 0.11 73.07 43.37M
NUS NUSANTARA RESOURCES LTD 0.4 72.93 67.45M
MAM MICROEQUITIES ASSET MANAGEMENT 0.52 72.68 69.18M
PWG PRIMEWEST GROUP LTD 1.15 72.53 401.51M
CMM CAPRICORN METALS LTD 1.25 72.24 405.93M
ADT ADRIATIC METALS PLC-CDI 1.63 71.94 288.79M
CNL CELAMIN HOLDINGS LTD 0.15 71.46 22.41M
ANG AUSTIN ENGINEERING LTD 0.23 71.37 133.17M
OLV OTHERLEVELS HOLDINGS LIMITED 0.01 70.4 4.02M
INV INVESTSMART GROUP LTD 0.13 70.18 17.79M
HLA HEALTHIA LTD 1.08 70.17 68.08M
SLM SALMAT LTD 0.69 70.01 136.77M

 

Running Cold

One thing that stood out this week is that the list of stocks with an RSI reading below 30 has been growing steadily in recent weeks.

Last week it was 54 — a new high — usurped this week by a total of 63 companies.

Among the names on the Running Cold list were Strike Energy (ASX:STX) and Warrego Energy (ASX:WGO), which have cooled off into the end of the year after some big price gains following the announcement of the big gas discovery at their West Erregulla joint venture in the Perth Basin.

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, December 6:

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