Hot Money Monday: These three stocks ran red-hot over Christmas/New Year period

Stockhead’s data team counted three stocks that ran red-hot with a 14-day RSI above 90 over the Christmas/New Year period.

Each Monday, Stockhead recaps the ASX stocks that are 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 running 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, January 8:

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

NSW-based power company Energy Technologies (ASX:EGY) rose steadily after coming out of a trading halt on December 18 and flagged a successful $1.8m share placement, followed by a board restructure announcement on December 24.

Also near the top of the Running Hot list was Core Lithium (ASX:CXO), which ripped higher over the holiday period.

CXO responded to an ASX price query by announcing that China-based company Yahua, its largest shareholder, had signed a binding five-year deal to supply EV maker Tesla with 75,000 tonnes per annum of lithium spodumene concentrate.

And junior gas explorer Norwest Energy (ASX:NWE) also posted a hot 13-day RSI reading of 90.28 over the break.

The company is developing the Lockyer Deep-1 well off the coast of WA with its partner company — the $7.5bn Mineral Resources (ASX:MIN). NWE shares ticked higher to 0.8 cents over the last two weeks on no news.

Running Cold

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

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