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The S&P/TSX Composite fell 0.72 per cent for the trading week ending with Thursday's close. The benchmark's current Relative Strength Index (RSI) level of 58.5 indicates that the market is in neutral technical territory, although closer to the overbought RSI signal of 70 than the oversold signal of 30.

There are 16 oversold, technically attractive stocks this week. Dividend-paying sectors are well represented after a difficult week of performance that likely resulted from rising bond yields. Corus Entertainment Inc. is the most oversold stock in the index, followed by Fortis Inc., Cineplex Inc. and Crew Energy Inc. Prominent dividend stock names in the remainder of the list include Hydro One Ltd., Rogers Communications, BCE, Canadian Utilities Ltd., and Crombie REIT.

I picked BCE as the focus stock this week because of its prominence in the market and the economy.

For a large cap company with a hefty yield (currently 4.9 per cent) BCE has spent a surprising amount of time in downtrends, below its 200 day moving average, in the past two years. The stock spent the entire period between mid-November 2016 and mid-March below the trend line and most of the July to September 2017 time frame as well.

RSI buy signals have worked relatively well in the past 24 months.

A deeply oversold reading around Remembrance Day 2016 marked a bottom for BCE's stock price , but it went sideways for four months before a considerable, 8.4-per-cent rally (not including dividend payments). Another buy signal in July 2017 led to a marginal 3.2-per-cent price increase.

The technical outlook for BCE looks reasonably promising but to some extent, short term performance will be dependent on fixed income markets. Like the other dividend-paying companies on the oversold list this week, BCE 's price will be negatively affected if bond yields continue to climb. Fundamental factors, like potential competition from streaming video, are also important to the mid-term outlook so investors should complete fundamental research before investing.

There are 23 stocks on the overbought, technically vulnerable list according to RSI this week. Pure Industrial REIT tops the list and other prominent names include Teck Resources Ltd., Crescent Point Energy Ltd., Royal Bank, and Canada Goose Holdings Inc.

RSIPrice200DMAReturn 1W %Return YTD %PE Ratio TTMPE Ratio Fwd
CJR.B-TCORUS ENTERTAINMENT INC-B SH13.357128.9512.8325-21.79156-22.393168.393777734#N.A N.A
FTS-TFORTIS INC19.0699543.6445.55465-2.533896-4.90132317.5939787816.44930268
CGX-TCINEPLEX INC21.025933.7644.4096-11.66886-9.96517633.2804273625.61456753
CR-TCREW ENERGY INC22.248572.684.0414-13.1579-16.19048#N.A N.A191.4285714
SJR.B-TSHAW COMMUNICATIONS INC-B23.9189227.1928.43255-5.365854-5.33286920.124418#N.A N.A
H-THYDRO ONE LTD24.5693221.622.98475-2.164112-3.12520.3773588517.03470032
WJA-TWESTJET AIRLINES LTD25.043725.0624.94435-5.841924-6.44916510.2359169.792887847
RCI.B-TROGERS COMMUNICATIONS INC-B26.3381262.1363.9302-0.3834478-2.65417618.7907506616.28144654
BCE-TBCE INC26.5313558.0959.8684-1.765002-3.21298416.936487216.774473
CU-TCANADIAN UTILITIES LTD-A27.7015536.339.3317-1.439044-2.96712116.1375933215.49957301
NWC-TNORTH WEST CO INC/THE27.7344728.9631.2748-1.863144-3.65813121.3210190815.96471885
IFC-TINTACT FINANCIAL CORP27.87875102.4499.5298-1.690844-2.53357518.5947196115.18529499
MAXR-TMAXAR TECHNOLOGIES LTD27.9202178.171.44275-2.8375-3.94216523.3564710412.64982183
SAP-TSAPUTO INC27.9425542.1543.6443-4.796217-6.41876922.2241797619.74238876
TRI-TTHOMSON REUTERS CORP28.5804154.2357.9608-1.50772-1.04033626.3617003817.15041595
CRR.UN-TCROMBIE REAL ESTATE INVESTME29.268713.3213.85805-2.70073-3.40579722.72323996#N.A N.A
RSIPrice200DMAReturn 1W %Return YTD %PE Ratio TTMPE Ratio Fwd
NTR-TNUTRIEN LTD#N.A N.A66.4#N.A N.A-4.198419#N.A N.A#N.A N.A#N.A N.A
AAR.UN-TPURE INDUSTRIAL REAL ESTATE88.950528.0856.6320.3869119.4977821.39534155#N.A N.A
LIF-TLABRADOR IRON ORE ROYALTY CO85.9373428.3518.950232.8996014.37511.5417170513.67583213
TECK.B-TTECK RESOURCES LTD-CLS B85.705838.3227.3161911.8984415.302718.18720140710.13756614
ESI-TENSIGN ENERGY SERVICES INC82.056527.76.81949.45558718.08346#N.A N.A#N.A N.A
CTC.A-TCANADIAN TIRE CORP-CLASS A76.33002170.76155.31172.0254083.88041516.9518895815.47860769
HSE-THUSKY ENERGY INC74.6597118.69515.583950.80993525.183099106.419917234.05282332
G-TGOLDCORP INC74.0957117.4817.295954.1218648.73362432.5512395426.0243125
CPG-TCRESCENT POINT ENERGY CORP73.842911.4810.53778.79541118.7891465.49894187#N.A N.A
PD-TPRECISION DRILLING CORP73.334674.684.165958.45410617.84777#N.A N.A#N.A N.A
GTE-TGRAN TIERRA ENERGY INC73.213413.692.987751.6666677.331378#N.A N.A10.53611392
FM-TFIRST QUANTUM MINERALS LTD72.9795619.413.917553.23607410.50539#N.A N.A20.73539223
BYD.UN-TBOYD GROUP INCOME FUND72.47041105.0793.925855.3095574.19268568.8493758228.15380493
BBU.UN-TBROOKFIELD BUSINESS PT.UNNIT72.3826646.4537.272753.5254997.854008#N.A N.A18.38427347
YRI-TYAMANA GOLD INC72.259294.243.475452.9484036.88775530.130753838.96356864
SES-TSECURE ENERGY SERVICES INC71.618299.58.610052.4864868.219178#N.A N.A131.9444444
HBM-THUDBAY MINERALS INC71.5460212.39.073152.8667799.613657226.970100613.73422671
RBA-TRITCHIE BROS AUCTIONEERS71.450339.6938.04581.8144655.84484632.2526132835.02394191
BEI.UN-TBOARDWALK REAL ESTATE INVEST71.0564244.5843.948153.7037043.96843856.94010411#N.A N.A
RY-TROYAL BANK OF CANADA70.85313104.7296.544150.18114222.36726714.1217092913.02811645
FTT-TFINNING INTERNATIONAL INC70.644643327.832.8348914.06683526.7426265320.44609665
GEI-TGIBSON ENERGY INC70.420219.0517.69330.31729254.345435#N.A N.A80.04201681
GOOS-TCANADA GOOSE HOLDINGS INC70.1846640.9927.0887-2.2857143.34928283.2828807473.98916968
ECA-TENCANA CORP70.0646917.7813.885354.39434.83005431.0001074926.08238956

Source: Bloomberg/Scott Barlow

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