The S&P/TSX Composite rose another 0.9 per cent for the trading week ending with Friday’s close and now sports a respectable year to date return of 4.3 per cent.
The benchmark’s Relative Strength Index (RSI) of 64 leaves it in the higher end of the technically neutral range, much closer to the overbought sell signal of 70 than the attractive, oversold RSI buy signal of 30.
There are no oversold opportunities in the index this week, unfortunately. Transcontinental Inc. is closest with an RSI of 32 after falling 2.7 per cent.
At nine members, the list of technically vulnerable, overbought stocks is also short this week. When both overbought and oversold lists are short when the benchmark moves significantly, this usually indicates reversals in short term sector performance trends.
The most overbought S&P/TSX Composite companies are Intertape Polymer Group Inc., Pason Systems Inc., Tourmaline Oil Corp., Mullen Group Inc. and Nutrien Ltd.
There are 20 benchmark stocks showing strong price momentum by making new 52-week highs and they are ranked by market capitalization below. The biggest five companies hitting new highs are Canadian National Railway Co., Enbridge Inc., Canadian Pacific Railway, Nutrien Ltd., and TC Energy Corp.
Transcontinental Inc. is the only index member stock price at 52-week lows.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Scott Barlow