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.
Code Company Price RSI Market Cap EGY Energy Tech Ltd 0.15 97.22 19,667,640 CXO Core Lithium 0.225 92.32 209,880,367 NWE Norwest Energy NL 0.008 90.28 28,406,802 SLX Silex Systems 1.51 88.53 200,410,113 SOR Strategic Elements 0.33 87.34 115,405,867 CHK Cohiba Min Ltd 0.043 86.77 57,326,543 COY Coppermoly Limited 0.024 82.44 25,526,568 DOR Doriemus PLC 0.06 81.77 2,319,325 LIO Lion Energy Limited 0.042 80.53 8,710,875 KTE K2 Energy Ltd 0.057 79.17 13,529,572 DVN Devine Limited 0.18 77.41 30,158,806 LPD Lepidico Ltd 0.0175 77.31 93,343,231 AAU Antilles Gold Ltd 0.092 77.09 17,953,032 VKA Viking Mines Ltd 0.047 75.03 19,325,020 SRY Story-I Limited 0.02 73.87 6,288,585 PUR Pursuit Minerals 0.032 73.37 25,009,503 CLT Cellnet Group 0.12 73.37 25,586,204 XST Xstate Resources 0.008 73.33 10,867,445
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.
| Code | Company | Price | RSI | Market Cap |
|---|---|---|---|---|
| SAN | Sagalio Energy Ltd | 0.03 | 16 | $ 6,753,784.29 |
| NUC | Nuchev Limited | 1.28 | 23 | $ 48,657,600.00 |
| CAP | Carpentaria Resource | 0.054 | 16 | $ 16,074,891.72 |
| IXR | Ionic Rare Earths | 0.027 | 24 | $ 71,749,587.36 |
| DVN | Devine Limited | 0.13 | 29 | $ 20,634,972.28 |
| GES | Genesis Resources | 0.013 | 18 | $ 10,176,936.82 |
| MEM | Memphasys Ltd | 0.105 | 28 | $ 79,251,257.40 |
| AND | Ansarada Group Ltd | 1.25 | 18 | $ 103,965,413.12 |
| SEG | Sports Ent Grp Ltd | 0.2 | 18 | $ 46,220,211.20 |
| MTB | Mount Burgess Mining | 0.008 | 22 | $ 5,281,190.39 |
| GIB | Gibb River Diamonds | 0.083 | 27 | $ 17,555,283.94 |
| CUE | CUE Energy Resource | 0.084 | 26 | $ 53,057,098.72 |
| OVT | Ovato Limited | 0.008 | 26 | $ 69,862,498.02 |
| MSB | Mesoblast Limited | 2.46 | 30 | $ 1,480,718,685.60 |
| AQC | Auspaccoal Ltd | 0.14 | 28 | $ 8,077,569.60 |
| ESR | Estrella Res Ltd | 0.08 | 29 | $ 70,161,954.80 |
| NET | Netlinkz Limited | 0.05 | 22 | $ 124,407,429.20 |
| AHF | Aust Dairy Group | 0.064 | 29 | $ 27,341,401.98 |
| MPH | Mediland Pharm | 0.056 | 16 | $ 17,514,762.16 |