Data Insights

The most overbought and oversold ASX stocks – Week 20

Wed 15 May 24, 11:44am (AEST)
stocks that are overbought and oversold
Source: Shutterstock

Key Points

  • Lots of strongly trending charts - we explore why
  • Dive into the overbought stocks which have been moving
  • Little change to the oversold list

Something a little different this week - short comments on the most interesting overbought stocks.

There are plenty of great-looking charts amongst the overbought cohort, some of which I have been talking to investors about.


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.


Most Overbought ASX Stocks

Company

RSI(14)

Last Price

1-mo Chg%

New O/B?

Vulcan Energy Resources (VUL)

70

$21.24

+21.2%

-

Amcor (AMC)

78

$12.81

+12.8%

-

Base Resources (BSE)

79

$0.250

+131.8%

-

Clarity Pharmaceuticals (CU6)

74

$45.93

+45.9%

-

Dalrymple Bay Infrastructure (DBI)

72

$5.43

+5.4%

Y

Emeco Holdings (EHL)

75

$0.770

+5.4%

-

Jupiter Mines (JMS)

76

$0.370

+40.4%

-

Kingsgate Consolidated (KCN)

71

$1.800

+19.2%

-

Nuix (NXL)

71

$16.43

+16.4%

-

Pinnacle Investment Management Group (PNI)

72

$14.38

+14.4%

Y

PSC Insurance Group (PSI)

79

$11.07

+11.1%

-

Pexa Group (PXA)

71

$22.52

+22.5%

-

Qantm Intellectual Property (QIP)

75

$1.800

+15.0%

-

Race Oncology (RAC)

72

$1.650

+8.6%

Y

Red 5 (RED)

71

$0.470

+10.5%

Y

Silex Systems (SLX)

73

$17.92

+17.9%

Y

WA1 Resources (WA1)

71

$26.04

+26.0%

Y

Southern Cross Electrical Engineering (SXE)

79

$1.580

+41.1%

-

AIC Mines (A1M)

70

$0.520

+31.3%

Y

Data as of the close on Tuesday, 14 May 2024. Liquidity filter applied (stocks with a close price greater than $0.05, market capitalisation greater than $200 million, and average daily turnover over the last 21 days greater than $500,000.

Vulcan Energy Resources (VUL) - Great looking chart, a trend trader's dream over the past six months and particularly since February. Driven by newsflow - first lithium chloride was produced from optimisation plant 11 April.

Vulcan 6-month chart

Amcor (AMC) - Was on the list last time out following a strong announcement, but has kept rallying and taken our all of the prior swing highs over the past 12-months. An incredible rally but, with an RSI at 78, it's approaching what I would call 'extreme overbought' (i.e. an RSI @ 80 or above).

Amcor 12-month chart

Clarity Pharmaceuticals (CU6) - What a rally, what are chart. I recently spoke to fund manager Emanual Datt on Livewire's Buy Hold Sell - you can watch that discussion here

CU6 12-month chart

Emeco Holdings (EHL) - Another great looking chart, particularly in the last six months. Positive newsflow appears to have driven the rally, with the MD and CEO preso in November and announcements around asset sales seemingly the catalysts.

EHL six-month chart

Jupiter Mines (JMS) - This chart has really come alive since early March, when JMS released a scoping study for a high-purity manganese sulphate project.

JMS 6-month chart

Nuix (NXL) - has had a tortured life since listing at $5.31 in December 2020. The company hit the skids shortly after, as investors were aware that it wouldn't get near the forecast revenue targets. The stock slid to a low around 50c in October 2022, but has begun moving in the right direction again recently. So much so that the 12-month chart doesn't look half bad.

NXL 12-month chart

Qantm Intellectual Property (QIP) - Took off in January after upgrading FY24 earnings and hasn't looked back. One of the more explosive charts in the mix.

QIP 6-month chart

WA1 Resources (WA1) - Another one that I spoke to Datt Capital's Emanuel Datt about recently on Livewire's Buy Hold Sell - check it out here.

WA1 6-month chart

AIC Mines (A1M) - formerly Intrepid Mines Limited, A1M operates in gold and copper exploration. The half-yearly report on 22 Feb was the catalyst for the recent rally, which has been supported by announcements of significant increases in reserves.

AIC 6-month chart

Most Oversold ASX 200 Stocks

Company

RSI(14)

Last Price

1-mo Chg%

New O/S?

Bluescope Steel (BSL)

29

$21.32

-10.7%

Y

Fletcher Building (FBU)

16

$2.75

-22.8%

-

Kogan.Com (KGN)

28

$4.78

-38.4%

-

KMD Brands (KMD)

23

$0.410

-21.7%

-

Omni Bridgeway (OBL)

19

$0.750

-47.4%

-

Weebit Nano (WBT)

27

$2.61

-21.9%

-

WAM Capital (WAM)

29

$1.470

-11.8%

-

Sims (SGM)

29

$10.73

-13.5%

-

Spark New Zealand (SPK)

24

$3.93

-8.8%

-

Data as of the close on Tuesday, 14 May 2024. Liquidity filter applied (stocks with a close price greater than $0.05, market capitalisation greater than $200 million, and average daily turnover over the last 21 days greater than $500,000.

There's not much to see here - I spent plenty of time on the oversold list. The only new entrant is Bluescope which recently double-bottomed, hitting a low last seen on 5 March.

BSL 6-month chart

 

Written By

Chris Conway

Managing Editor

Chris is the Managing Editor at Livewire Markets and Market Index. His passion is equity research, portfolio construction, and investment education. He is also very keen on the powerful processes that can help all investors identify great opportunities and outperform the market, and wants to bring them to life and share them with you.

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