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 was a new leader on this week’s list, as National Veterinary Care (ASX:NVL) shot to the top with an RSI of 89.7 on the back of a $3.70-per-share takeover offer from VetPartners.

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, December 20:

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

Running Cold

After climbing steadily for a number of weeks, the number of stocks on the Running Cold list fell back to 57 from last week’s new high of 82.

Small business lender Prospa (ASX:PGL) continues to languish at the cooler end of the list, where it’s been since issuing a trading update on November 18 in which the company said revenue was unlikely to match its prospectus forecasts.

This week it was propping up the tail with an RSI reading of just 14.67, as the share price fell to a new low of $1.65.

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, December 20:

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