Hot Money Monday: These are the stocks with the most momentum; and introducing the simple moving average | spcilvly

  • We look at which ASX shares are trading with momentum
  • The 52-week high and the RSI are two momentum indicators
  • The simple moving average is also another measure of momentum.

Last week we looked at how traders find stocks that are trading with momentum.

We saw how most technical traders view the 52 week highs as input signals.

That is due to what is called “52 week high effect” – where if a price has broken out of its 52-week range, there must be some factor that generated enough momentum to continue the price movement in the same direction.

On the other hand, if a stock is very far from its 52-week high, analysts believe momentum will continue in that direction.

ASX Top 10 Small Caps Nearest or at 52-Week Highs

Code Name Price How far from the 52 week high?
IIC CI Resources $1.55 0.00%
BIT Biotron $0.05 0.00%
CAA Capral $9.10 0.00%
FRM Farm Pride Foods $0.14 0.00%
HZN horizon oil $0.18 0.00%
LKO Blue Energy Lakes $0.00 0.00%
STK Strickland Metals $0.06 0.00%
TGM theta gold mines $0.15 0.00%
MNP New Peak Metals $0.00 0.00%
CWX Carawine Resources $0.15 0.00%

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CI Resources (ASX:CII)

CII announced an agreement to sell Malaysian asset CheekahKemayan Plantations, a wholly-owned subsidiary of CII’s wholly-owned subsidiary Phosphate Resources, for a consideration of RM$155 million (or about $52 million).

The funds from the sale will be used to advance CI Resources’ diversification strategy, which includes strengthening the company’s logistics and fertilizer businesses.

Biotron (ASX:BIT)

The gene cell-focused biotech company has received a pair of speeding fines from the ASX as the company’s share price rose.

The company has published a letter to investors, saying it is in the final stage of three Phase 2 clinical trials for HIV-1 and COVID-19.

“This is a crucial time for the company as it completes data collection and analyzes of samples and information collected during testing ahead of the release of topline data in the coming weeks,” the company said.

Which stocks are “oversold” as indicated by the RSI?

We also saw how the Relative Strength Index (RSI) It can be used to indicate whether a stock is oversold or undersold.

The RSI is a measure of the strength of a stock’s momentum, whether up or down.

Generally speaking, an RSI above 70 means a stock is overbought; and an RSI below 30 indicates that it is oversold.

Meanwhile, an RSI above 80 is strongly overbought and an RSI below 20 is strongly oversold.

Top 10 ASX Small Caps with Low 9-Day RSI (Oversold)

Code Name 2-day RSI 9 day RSI
SES SECOS Group oversold
DGR DGR Global oversold oversold
J.H.G. Janus Henderson oversold
BUB Bubs Australia oversold
LEG Legend mining oversold
YES H Sihayo Gold oversold oversold
PvE Po Valley Energy oversold oversold
SBR Saber resources oversold
HYD hydrix oversold
L.I.N. Lindian Resources oversold
GGE Great Gulf Energy oversold
STM sunstone metals oversold oversold

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The packaging company was sold after reporting a -26% drop in sales for FY23.

The company has also widened its losses, with NPAT at -$6.75 million from -$3.08 million a year earlier.

SECOS suffered significant losses in its resin business, down 51.9% from pcp, due to logistical and pandemic factors that led to excess resin inventory being held.

DGR Global (ASX:DGR)

DGR Global and Armor Energy (ASX: AJQ) have created a new UK-incorporated company, ‘Conjugate Energy’, which will have interests in oil exploration projects in Albertine Graben, Uganda.

Conjugate intends to apply for admission to a UK stock exchange and raise funds primarily to drill two exploration wells or drill ready prospects with substantial oil resources.

Simple Moving Averages (SMA) Also Indicating Momentum

Here is another indicator that can be used to measure momentum, that is, whether a stock is in an uptrend or downtrend.

He Moving averages It is one of the central indicators in technical analysis, and the Simple Moving Averages or SMAIt is the easiest moving average to construct.

The formula for calculating the SMA is quite simple: it is simply the average price over a specific period:

SMA = (A1 + A2 + ….. An) / n

An = the price of the stock in period n
n = the number of total periods

The average is called “moving” because it is plotted on the chart bar by bar, forming a line that moves along the chart as the average value changes.

SMAs can smooth price data and cancel out short-term noises (price fluctuations). The higher the number of total periods (n) in the SMA calculation, the smoother the chart will be, which in turn makes it easier to see the stock’s price trend.

The SMA is often used to determine whether a stock’s price will continue in the same direction or reverse a bullish or bearish trend.

As a general rule, if the current stock price is above the SMA, the price trend is bullish. If the price is below the SMA, the trend is bearish.

Top 10 ASX Small Caps Priced Above SMA

Code Name Last price value Price vs. 20-day SMA Price vs. 50-day SMA Price vs. 200-day SMA
FL1 First lithium $0.27 >5% above SMA >5% above SMA >5% above SMA
CKA coca $0.12 >5% above SMA 1 to 5% above SMA
CT1 Constellation technologies $0.00 >5% above SMA
AJL aj lucas $0.02 >5% above SMA >5% above SMA
atp Pearls of the Atlas $0.07 >5% above SMA >5% above SMA >5% above SMA
BIT Biotron $0.05 >5% above SMA >5% above SMA >5% above SMA
btc BTC Health $0.04 >5% above SMA >5% above SMA 1 to 5% above SMA
DYL deep yellow $1.29 >5% above SMA >5% above SMA >5% above SMA
GTG Genetic technologies $0.00 >5% above SMA 1 to 5% above SMA
JGH jade gas $0.04 >5% above SMA 0 to -1% below SMA
CIE energy icon $0.01 >5% above SMA >5% above SMA >5% above SMA
C.N.W. Cirrus Networks $0.06 >5% above SMA >5% above SMA >5% above SMA
MTL Mantle minerals $0.00 >5% above SMA >5% above SMA -1 to -5% below SMA
MTB Mount Burgess Mining NL $0.00 >5% above SMA 1 to 5% above SMA -1 to -5% below SMA

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First Lithium (ASX:FL1)

First, Lithium returned to work on the ASX after a long and lonely suspension.

FL1 shares registered more than 41% by lunch in a warm welcome, to end the day up more than 47% on Thursday.

FL1 is hunting spodumene in Mali, just down the road from Goulamina, where China’s Ganfeng and $700m-capped ASX developer Leo Lithium (ASX:LLL) plan to open the world’s first major spod mine. Africa next year with a world-class capacity of 500,000 tpa.

Cokal (ASX:CKA)

Cokal announced that it has finally received a Jetty Operating Permit associated with the Bumi Barito Mineral metallurgical coal mine (Cokal 60%).

The process of obtaining this permit caused unforeseen delays in Cokal’s first coal sale.

Cokal will now move forward with the immediate priority of scheduling the inaugural shipment of BBM coal as soon as possible.

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