Skip to main content

Manitoba Telecom Services Inc. tops the list of oversold TSX stocks after the stock price took an almost ten per cent beating over the past week. According to the 14-day Relative Strength Index technical indicator, Canadian National Railways also appears on the overbought list, along with the week's biggest surprise – Fairfax Financial Holdings Ltd..

The nation's love affair with Air Canada and Petrominerales Ltd. continued this week and those stocks remain extremely overbought measured by the Relative Strength Index. Pason Systems Inc., Valeant Pharmaceuticals International, Aimia Inc., Dream Unlimited and ATS Automation fell off the overbought list.

The ranks of overbought companies were some interesting new entries – CN Rail, Bank of Montreal, Northland Power Inc., Alimentation Couche-Tard and Fairfax Financial.

RBC Capital Markets analyst Walter Spracklin upgraded CN Rail to Buy this week, helping push the stock higher by four per cent and into overbought territory.

Fairfax sits just below overbought levels with an RSI reading of 69.8. The stock climbed 3.2 per cent this week on hopes that either former BlackBerry Ltd.CEO Michael Lazaridis or prominent venture capital firm Cerberus Capital Management LP will help bail them out of the Blackberry mess.

Metro Inc jumped out of the oversold list with a strong weekly rise of 2.6 per cent. Manitoba Telecom Services is now the most oversold stock in the TSX after a tough week, and also the subject of our weekly chart focus (link).

Silver Standard Resources and Eldorado Gold maintain the precious metals sector's prescence in the ranks of oversold stocks. Cameco Corp is also mired in oversold territory after a 1.9 per cent loss for the stock.

The usual warnings apply. Technical measures like RSI are an excellent starting point for research but not on their own reason enough to invest. RSI also changes quickly, so a stock may remain oversold for only one or two trading sessions. Numbers posted are closing values as of Thursday October 10.

To see the charts on mobile devices, click on the following links:

Manitoba Tel stock price vs RSI: http://bit.ly/1654NRx

S&P/TSX Oversold Stocks – Oct. 11: http://bit.ly/1fp381z

S&P/TSX Overbought stocks – Oct. 11: http://bit.ly/1fp2Pnu

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe