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 Thursday, April 1:
Scroll or swipe to reveal table. Click headings to sort.
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| ROG | Red Sky Energy | 0.012 | 92 | $ 41,412,799.77 |
| 88E | 88 Energy Ltd | 0.067 | 89 | $ 863,989,739.74 |
| PCL | Pancontinental Oil | 0.0035 | 85 | $ 18,020,146.46 |
| LEX | Lefroy Exploration | 1.28 | 77 | $ 150,612,132.09 |
| MOC | Mortgage Choice Ltd | 1.92 | 83 | $ 239,995,084.80 |
| ENX | Enegex Limited | 0.094 | 77 | $ 13,076,873.26 |
| DW8 | Digital Wine Venture | 0.16 | 84 | $ 257,811,391.97 |
| PVL | Powerhouse Ven Ltd | 0.155 | 70 | $ 10,016,637.23 |
| VR8 | Vanadium Resources | 0.073 | 78 | $ 17,965,317.02 |
| OKJ | Oakajee Corp Ltd | 0.085 | 76 | $ 6,894,798.28 |
| EM2 | Eagle Mountain | 0.655 | 70 | $ 113,622,634.06 |
| BXN | Bioxyne Ltd | 0.016 | 72 | $ 10,242,326.37 |
| ASO | Aston Minerals Ltd | 0.12 | 70 | $ 100,245,204.34 |
| AKO | Akora Resources | 0.475 | 72 | $ 24,384,033.60 |
| ZEO | Zeotech Limited | 0.105 | 74 | $ 140,439,016.03 |
| ITG | Intega Group Limited | 0.42 | 72 | $ 170,118,047.20 |
| OEC | Orbital Corp Limited | 1.06 | 74 | $ 77,658,776.00 |
| NAM | Namoi Cotton Ltd | 0.41 | 74 | $ 57,627,958.36 |
| SRH | Saferoads Holdings | 0.32 | 89 | $ 11,987,770.56 |
| 8IH | 8I Holdings Ltd | 0.24 | 76 | $ 77,778,204.57 |
| SVM | Sovereign Metals | 0.535 | 71 | $ 206,974,719.53 |
| DTZ | Dotz Nano Ltd | 0.375 | 74 | $ 127,970,008.52 |
| CDD | Cardno Limited | 0.62 | 82 | $ 244,782,168.23 |
| CHN | Chalice Mining Ltd | 5.47 | 72 | $ 1,794,827,073.81 |
| GLH | Global Health Ltd | 0.52 | 74 | $ 21,891,126.40 |
The company with the largest RSI is energy micro cap Red Sky Energy (ASX:ROG).
Shares have skyrocketed in the last two weeks ever since a petrophysical evaluation of its Killanoola Southeast-1 well in South Australia identified 16 metres of net pay zones – 10 times more than what the company was expecting.
Mortgage broking franchise Mortgage Choice (ASX:MOC) ran hot last week since receiving a $244 million takeover offer from REA Group (ASX:REA).
Lefroy (ASX:LEX) has gone on another run after its latest exploration update. The company has rocketed since February after exploration results at its Burns prospect and the company is expecting more results in mid-April.
Last year’s exploration success story Chalice (ASX:CHN), which has gone from 16 cents to $5.50 in 12 months, has also run hot after identifying further anomalies at its Julimar discovery – which it claims to be Australia’s first major palladium discovery.
Running Cold
Here’s a summary of the stocks that were running cold for the two weeks ended Thursday, April 1:
Scroll or swipe to reveal table. Click headings to sort.
| Code | Company | Price | RSI | MktCap$ |
|---|---|---|---|---|
| PBX | Pacific Bauxite Ltd | 0.3 | 30 | $ 1,189,842.10 |
| ATU | Atrum Coal Ltd | 0.055 | 2 | $ 32,571,372.57 |
| CSX | Cleanspace Holdings | 1.94 | 18 | $ 146,337,093.70 |
| N1H | N1 Holdings Ltd | 0.075 | 20 | $ 6,116,667.98 |
| IS3 | I Synergy Group Ltd | 0.051 | 24 | $ 9,368,984.99 |
| AYS | Amaysim Aus Ltd | 0.21 | 9 | $ 64,548,780.24 |
| RSG | Resolute Mining | 0.445 | 27 | $ 485,712,790.64 |
| IKW | Ikwezi Mining Ltd | 0.28 | 15 | $ 11,381,992.72 |
| AAP | Australian Agri Ltd | 0.02 | 14 | $ 6,094,335.36 |
| ECG | Ecargo Hldg | 0.033 | 26 | $ 20,303,250.00 |
| AV1 | Adveritas Ltd | 0.12 | 25 | $ 46,399,999.88 |
| SCI | Silver City Minerals | 0.018 | 21 | $ 8,772,484.55 |
| HAW | Hawthorn Resources | 0.05 | 27 | $ 16,675,780.65 |
| GLB | Globe International | 4.51 | 29 | $ 194,879,944.60 |
| BMG | BMG Resources Ltd | 0.054 | 26 | $ 12,959,549.53 |
| FNP | Freedom Food Ltd | 0.475 | 3 | $ 130,241,379.93 |
| YFZ | Youfoodz | 0.62 | 26 | $ 85,368,620.22 |
| LCT | Living Cell Tech. | 0.012 | 28 | $ 6,857,291.77 |
| LBY | Laybuy Group Holding | 0.91 | 21 | $ 153,526,760.64 |
The stock that has run the coldest is Atrum Coal (ASX:ATU) which has a coal project in Alberta.
Dairy processing company Freedom Food (ASX:FNP) saw a similar sell-off too after ending a suspension of several months.
The company had discovered accounting irregularities which resulted in an exodus of senior staff and directors and required the company to recapitalise.