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The good news is that the S&P/TSX Composite had a strong 1.6 per cent week Thursday to Thursday but isn't overbought according to the Relative Strength Index indicator yet. The bad news is that there are very few oversold stocks offering interesting technical entry points.

There are, however, a few very prominent names among U.S. oversold stocks that are worth a closer look.

The only two TSX stocks trading below the RSI buy signal of 30 are frequent guest Aimia Inc. and Yamana Gold Inc. I'm not interested in either at this point. Aimia has shown a remarkable tendency to disappoint even when drastically oversold, and Yamana's purchases of Osisko's assets will make that stock tough to figure out until the dust settles.

The list of oversold U.S. stocks is a lot more interesting this week even if it's not that big. Netflix Inc and Amazon.com Inc. have nosebleed price-to-earnings ratios that are too rich for most investors. But, network software provider Red Hat Inc – a stock often highlighted by Bank of America Merrill Lynch and others as a strong peripheral play on cloud computing – is there and I'll use that for focus chart of the week.

According to the chart, RSI appears effective in finding entry points for Red Hat, even though stock performance has been relatively flat. Investors who jumped in in November 2013, for instance, were rewarded with a 40 per cent price surge.

Back to Canada, the ranks of overbought stocks have swelled to 32. Energy stocks still dominate the list, with Advantage Oil and Gas Ltd. and Pacific Rubiales Energy Corp. the two most technically extended stocks in the TSX. Birchcliff Energy Ltd and Crew Energy Ltd are close behind.

Usual warnings apply; technicals are technicals and, while effective at finding buy and sell opportunities, only part of the investing story. In this weekly column, I try to only point out oversold opportunities where, if RSI doesn't work, the portfolio damage will be mitigated by other factors like dividends or stable earnings growth prospects. Still, investors should never buy any stock without fundamental research.

Follow Scott Barlow on Twitter at @SBarlow_ROB.

NameTickerRSIReturn 1W %PE Ratio TTMPE Ratio Fwd
**Oversold - TSX**
Aimia IncAIM25.4-3.54N/A22.75
Yamana Gold IncYRI28.18-4.9453.4731
**Oversold - U.S. **
Netflix IncNFLX26.72-1.16148.2176.29
Red Hat IncRHT28.66-1.754.7733.08
Family Dollar StoresFDO30.530.4515.316.66
Amazon.com IncAMZN31.18-1.38590.4882.62
Cerner CorpCERN32.99-1.2544.0133.57
**Overbought - TSX**
Advantage Oil & Gas LtdAAV85.85.9756815.15
Pacific Rubiales Energy CorpPRE81.8810.3314.218.21
Badger Daylighting LtdBAD79.637.9639.3831.66
Altagas LtdALA78.761.7829.925.67
Birchcliff Energy LtdBIR78.683.0225.5726.16
Crew Energy IncCR78.377.08N/AN/A
Vermilion Energy IncVET78.130.9525.3720.92
Raging River Exploration IncRRX77.92.6333.5120.09
Nuvista Energy LtdNVA77.294.56N/A74.67
Encana CorpECA76.792.7833.4821.5
MEG Energy CorpMEG75.941.45N/A24.21
Precision Drilling CorpPD75.743.819.9714.59
Canadian Natural ResourcesCNQ74.943.4720.5414.25
Suncor Energy IncSU74.892.6712.5811.16
Linamar CorpLNR74.6910.316.4214.38
Cogeco Cable IncCCA73.893.9110.1512.31
Cenovus Energy IncCVE73.790.7624.8118.47
Sherritt International CorpS73.3918.083.07N/A
Legacy Oil + Gas IncLEG73.253.17N/A19.97
Paramount Resources Ltd -APOU73.233.61N/AN/A
AGF Management Ltd-Class BAGF.B73.223.7445.919.69
Maple Leaf Foods IncMFI73.172.45146.25127.17
Canadian Tire Corp-Class ACTC.A73.152.0215.3114.28
Enerflex LtdEFX73.11.4824.3714.99
Bellatrix Exploration LtdBXE72.83.2825.412.86
Canadian Energy Services & TCEU72.754.3953.1331.82
Superior Plus CorpSPB71.739.7634.3216.94
Secure Energy Services IncSES71.523.0754.0639.23
Emera IncEMA71.211.1416.3918.45
Celestica IncCLS70.93.7416.7711.66
Canadian Oil Sands LtdCOS70.78-0.3912.3912.29
Pembina Pipeline CorpPPL70.57-0.1940.5332.87
Martinrea International IncMRE70.0722.6910.8710