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The S&P/TSX Composite index dropped 1.9 per cent for the trading week ending with Thursday's close.

According to Relative Strength Index (RSI), the domestic benchmark is in neutral technical territory with a reading of 44.6, between the buy signal of 30 and the sell signal of 70.

There are only nine index stocks trading in officially oversold territory – below 30 – which was fewer than I expected given overall market weakness. There are, however, a large number of stocks, 27 of them, trading just out of oversold range with RSI levels between 30 and 35.

Crescent Point Energy Corp. is the focus chart this week despite my usual reluctance to feature oil and precious metals stocks. Energy and bullion stocks are often so sensitive to commodity prices that whether they are overbought or oversold is a secondary factor. Crescent Point is so popular in the brokerage industry however, that it's worth a shot.

RSI buy signals have worked well for Crescent Point in the past two years, even, surprisingly, when the stock price was below the 200-day moving average. A deeply oversold reading in December of 2014 was followed by a 52-per-cent rally and another in March predicted a 20-per-cent stock price increase. Buy signals in August 2015 and January 2016 also uncovered lucrative entry points.

RSI's record with Crescent Point was not perfect though, as buy signals in October 2014 and July 2015 were no help at all. The stock has recently knifed through its 200-day moving average which is also cause for concern.

In the end, I think that investors with a positive view on the oil price and Crescent Point's prospects – as always, fundamental analysis is necessary before any market transaction – can be reasonably confident adding the stock at these levels.

This week's list of overbought, technically vulnerable benchmark constituents is unsurprisingly small in light of market weakness. BRP Inc. is the most overbought stock in the S&P/TSX Composite, followed by Badger Daylighting Inc., Parkland Fuel Corp., and Great Canadian Gaming Corp.

Follow Scott Barlow on Twitter @SBarlow_ROB.