Each week, Stockhead presents a summary of moves in the relative strength index (RSI) for small-cap ASX stocks.

The RSI is a technical price indicator which is calculated on two key factors; the number of days a stock closes higher (or lower) from the previous session, and the size of those daily moves — both measured over a period of two weeks.

For a more detailed recap of how it works, click here.

By presenting the data for stocks with both high and low RSI reading, our Hot Money coverage aims to provide a useful snapshot of which stocks are in favour among investors, and which aren’t.

A reading of 70 is seen as the level at which a company’s been overbought. If a stock has a reading of 30 or below, it may be undervalued. Here’s this week’s list:

Running hot

For the two-week period ended June 7, a total of 12 stocks recorded RSI readings above 75 — down from 17 the previous Friday.

The index had a new leader last week in Monash IVF Group (ASX: MVF), which registered an RSI of 85.94.

Quite often, a high RSI reading is accompanied by one or more positive market announcements by the company in question. But MVF has provided no updates since May 24, when it issued a change in substantial shareholder notice.

Since that date, the stock has climbed steadily from $1.145 to $1.30. Since it was founded in 2008, MVF has grown via acquisition and currently operates IVF, genetic testing and ultrasound services across Australia and Asia.

Here’s a summary of the stocks that were running hot for the two weeks ended Friday, June 7:

Code Name RSI - 2 weeks Price ($) Market Cap
MVF MONASH IVF GROUP LTD 85.94 1.30 $306,521,664.00
MEI METEORIC RESOURCES NL 77.93 0.02 $21,336,080.00
AIR ASTIVITA LTD 77.91 0.44 $23,688,292.00
RES RESOURCE GENERATION LTD 77.27 0.18 $104,648,464.00
MCX MARINER CORP LTD 77.07 0.05 $618,213.69
MML MEDUSA MINING LTD 76.56 0.45 $93,507,432.00
PCK PAINCHEK LTD 76.17 0.15 $131,549,560.00
REF REVERSE CORP LTD 75.46 0.04 $3,714,422.50
VRT VIRTUS HEALTH LTD 75.24 4.13 $332,004,480.00
JRL JINDALEE RESOURCES LTD 75.20 0.33 $11,548,276.00
RND RAND MINING LTD 75.04 3.03 $182,249,872.00
PPK PPK GROUP LTD 75.01 2.65 $215,678,400.00

 

Running cold

There were 21 stocks with an RSI below 25, up from 20 the week prior.

Perhaps not surprisingly, Dacian Gold (ASX: DCN) was icy cold with an RSI reading of just 9.59.

The stock was the worst performer on the ASX last week, after the company announced a production downgrade at its WA gold mine.

Also running cold was investment advisory company Evans Dixon (ASX: ED1), which fell to $1.02 from $1.60 at the start of April and posted an RSI of 10.65.

Here’s a summary of the stocks that were running cold for the two weeks ended Friday, June 7:

Code Name RSI - 2 weeks Price ($) Market Cap
GMN GOLD MOUNTAIN LTD 24.90 0.05 $26,386,394.00
ICU ISENTRIC LTD 24.87 0.01 $1,101,930.25
TPC TPC CONSOLIDATED LTD 24.51 0.60 $6,741,368.00
AMT ALLEGRA ORTHOPAEDICS LTD 24.46 0.08 $7,865,165.00
MYQ MYFIZIQ LTD 24.40 0.16 $14,526,169.00
XST XSTATE RESOURCES LTD 23.54 0.00 $2,280,981.75
BLT BENITEC BIOPHARMA LTD 22.05 0.12 $30,843,532.00
EMB EMBELTON LTD 22.03 10.50 $22,657,424.00
LNG LIQUEFIED NATURAL GAS LTD 21.85 0.26 $148,671,168.00
GTN GTN LTD 20.80 1.07 $239,680,016.00
LAA LATAM AUTOS LTD 20.58 0.06 $26,361,490.00
JHC JAPARA HEALTHCARE LTD 19.33 1.25 $335,395,392.00
GSM GOLDEN STATE MINING LTD 19.09 0.06 $2,175,072.00
LHB LIONHUB GROUP LTD 18.63 0.01 $5,784,448.00
AIY AUTHORISED INVESTMENT FUND LTD 17.13 0.04 $17,302,712.00
LMW LANDMARK WHITE LTD 17.02 0.18 $15,324,140.00
ACW ACTINOGEN MEDICAL LTD 16.97 0.01 $12,311,545.00
DAF DISCOVERY AFRICA LTD 14.13 0.01 $1,093,408.25
ED1 EVANS DIXON LTD 10.65 1.01 $236,036,752.00
SUR SUN RESOURCES NL 10.18 0.00 $881,057.56
DCN DACIAN GOLD LTD 9.59 0.44 $99,313,896.00

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