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Data Insights
The 10 most overbought and oversold ASX 200 stocks – Week 15
By
Kerry Sun
Mon 08 Apr 24, 1:24pm (AEST)
Source: Shutterstock
Stocks in article
Key Points
- Gold and energy stocks including Karoon Energy, Santos and Evolution Mining are among the most overbought stocks on the ASX 200
- CSR remains the most overbought stock for a sixth consecutive week. The stock remains under takeover offer from France's Saint-Gobain
- Reporting season losers including Kelsian Group, IPH and IDP Education continue to linger around oversold territory
Gold and energy stocks are among the most overbought stocks on the ASX 200 after prices for the underlying commodities both soared around 5% last week.
The 14-day Relative Strength Index is a momentum indicator that measures the magnitude and speed of recent price changes to assess whether or not a stock is overbought or oversold.
An RSI of 70 or above is considered to be overbought, which means the stock is rising too quickly and likely to experience a pullback. Meanwhile, an RSI of 30 or below is considered to be oversold, which means the stock is falling too quickly and is likely to experience a rebound.
Based on this indicator, CSR (set to be acquired by France's Saint-Gobain at $9.00 cash per share) remains the most overbought stock on the ASX 200 with an RSI of 82.
Most Overbought ASX 200 Stocks
Ticker | Company | RSI | 1-Month % | Close Price | Target price | Upside |
|---|---|---|---|---|---|---|
CSR | 82 | 0.0% | $8.83 | $6.90 | -21.9% | |
Karoon Energy | 76 | 15.2% | $2.27 | $2.60 | 14.5% | |
Santos | 76 | 9.8% | $7.93 | $8.32 | 4.9% | |
Evolution Mining | 75 | 21.9% | $3.90 | $3.76 | -3.6% | |
West African Resources | 74 | 29.6% | $1.32 | $1.76 | 33.8% | |
Ramelius Resources | 74 | 23.8% | $1.95 | $1.95 | 0.0% | |
Alumina | 73 | 36.4% | $1.50 | $1.24 | -17.3% | |
Altium | 73 | 0.0% | $65.30 | $62.18 | -4.8% | |
Virgin Money | 72 | 36.1% | $4.11 | na | na | |
Ampol | 71 | 10.4% | $41.28 | na | na |
'Target price' is an aggregate of broker target prices from Refinitiv. Data is current as of the close on Friday, 5 April 2024
Oil prices settled 4.5% higher last week, continuing to trade at its highest levels in six months. Large cap energy names including Santos and Karoon Energy have pushed 8-15% in the past month. Although names like Beach Energy (ASX: BPT) and Woodside (ASX: WDS) have lagged due to company-specific factors such as higher-than-expected capex and commitments to renewables.
WTI crude (red) vs. Karoon Energy (orange) and Santos (blue) | Source: TradingView
Gold notched its best week since October 2023, up 4.8% and pushing above the US$2,300 an ounce level for the first time on record. The gains so far have been led by the most unloved names like West African Resources – a fast growing gold producer operating out of Burkina Faso.
Gold (orange) vs. West African Resources (red), Ramelius Resources (blue) and Evolution (green) | Source: TradingView
Most Oversold ASX 200 Stocks
The oversold stocks list continues to feature a number of February reporting season losers which have struggled to stabilise. This includes names such as:
Kelsian Group: Half-year earnings missed estimates and management flagged higher depreciation costs
IPH: Half-year earnings missed estimates amid a decrease in filings in Asia
IDP Education: Half-year earnings beat consensus but analysts remain near universally focused on the heightened and highly uncertain regulatory landscape facing IDP
Orora tumbled into oversold territory last week, after the company downgraded its FY24 earnings amid softening trends, price deflation and the underperformance of its newly acquired Saverglass business.
Ticker | Company | RSI | 1-Month % | Close Price | Target price | Upside |
|---|---|---|---|---|---|---|
Spark New Zealand | 25 | -6.7% | $4.35 | $4.57 | 5.1% | |
Orora | 26 | -16.9% | $2.21 | $2.65 | 19.9% | |
Aristocrat Leisure | 29 | -10.5% | $41.59 | $48.05 | 15.5% | |
Champion Iron | 30 | -14.6% | $6.61 | $8.35 | 26.3% | |
Chorus | 31 | -8.0% | $6.86 | na | na | |
Kelsian Group | 32 | -4.3% | $5.53 | $7.07 | 27.8% | |
Coronado Global | 33 | -16.3% | $1.16 | $1.98 | 71.4% | |
IPH | 33 | -5.7% | $5.92 | $9.14 | 54.4% | |
Lifestyle Communities | 34 | -4.0% | $14.51 | $17.47 | 20.4% | |
IDP Education | 35 | -8.3% | $17.23 | $24.25 | 40.7% |
'Target price' is an aggregate of broker target prices from Refinitiv. Data is current as of the close on Friday, 5 April 2024
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