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Forestry stocks overbought, utility giant oversold

Plodding but profitable stocks like Fortis Inc and Empire Co. rarely make appearances in the oversold list, but that’s the situation we have this week. The trees continue to rocket higher – the forestry sector now dominates the top of the overbought list by Relative Strength Index.

Fortis announced plans to acquire U.S.-based utility UNS Energy Corp and the market clearly hated this idea, taking the stock lower by 6.5 per cent in the aftermath. Standard and Poor’s immediately downgraded the company’s credit outlook on the news, which was also unhelpful.