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:


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: