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The S&P/TSX Composite fell 0.21 per cent for the trading week ending with Thursday's close and now stands 5.3 per cent higher for the year.

According to Relative Strength Index (RSI), the benchmark is right at overbought territory with an RSI reading of 69.8 that is only a whisker away from the sell signal of 70.

Despite the weekly decline in the benchmark there is only one index member, Advantage Oil and Gas Ltd., trading below the RSI buy signal of 30.

The lack of oversold options to choose from led to Royal Bank of Canada, one of the most overbought stocks in the index, as the focus chart this week. Selling Canadian bank stocks has rarely been a good idea, but the chart should indicate whether Canadian investors should hold off before buying more Royal Bank shares.

RSI sell signal have effectively predicted pauses in positive performance and outright declines for Royal Bank stock in the past 24 months.

A sell signal in April of 2015 was followed by a significant 12-per-cent decline to early September 2015. A series of four RSI sell signals in April, May, October and November 2016 were followed by only minimal pullbacks before price rallies resumed. But another sell signal in February of 2017 forecasted a more severe 9-per-cent drop ending in September.

Royal Bank stock looks like a clear case where investors should hold off buying until technical froth burns off and it's no longer overbought. RSI levels change very quickly, so it's reasonable to hope it won't be long.

There are 28 stocks other than Royal Bank on the overbought, technically vulnerable list this week, let by Pretium Resources Inc. Other prominent overbought names include Bank of Montreal, Power Corp., National Bank of Canada, Canadian Imperial Bank of Commerce and Brookfield Property Partners

NAMERSIPrice200DMAReturn 1W %Return YTD %PE Ratio TTMPE Ratio Fwd
AAV-TADVANTAGE OIL & GAS LTD25.193587.048.370975-5.121294-22.8070225.7247884730.34482759
RSIPrice200DMAReturn 1W %Return YTD %PE Ratio TTMPE Ratio Fwd
PVG-TPRETIUM RESOURCES INC84.2017615.1712.6824526.9456136.42086#N.A N.A15.08184962
AIF-TALTUS GROUP LTD83.924934.0330.119953.02754711.5982732.1822850624.76710335
AP.UN-TALLIED PROPERTIES REAL ESTAT81.3384541.2937.41230.978236518.4544121.4860392318.5990991
RY-TROYAL BANK OF CANADA78.8949798.5694.632950.37681811.4592813.7044983512.64562484
BMO-TBANK OF MONTREAL77.8933897.0896.202550.29961963.32291411.804866811.91165644
ZZZ-TSLEEP COUNTRY CANADA HOLDING77.4177439.4234.72514.7011938.9178527.8216521723.57655502
CIGI-TCOLLIERS INTERNATIONAL GROUP77.352346863.506256.44959337.5225928.972235719.45689179
CCL.B-TCCL INDUSTRIES INC - CL B76.6195763.9658.943472.53286321.9112428.0672898922.47364722
WEED-TCANOPY GROWTH CORP76.261113.079.618253.15706242.99781#N.A N.A#N.A N.A
CEU-TCES ENERGY SOLUTIONS CORP75.936486.956.66714.668672-8.95379#N.A N.A39.48863636
AX.UN-TARTIS REAL ESTATE INVESTMENT75.7817813.6813.078051.10864714.574049.4479185619.841726619
IFP-TINTERFOR CORP75.331420.8417.877252.91358138.6560218.0460869324.92822967
STN-TSTANTEC INC74.5064135.3933.742050.1414815.48156525.7197566816.31627478
POW-TPOWER CORP OF CANADA74.3219132.3430.647851.09409211.4571910.5840158310.69444444
BB-TBLACKBERRY LTD74.2729614.3411.53333.46320555.19481#N.A N.A348.6684272
NA-TNATIONAL BANK OF CANADA73.557561.0455.89690.378227315.4276611.5614558310.83806818
CTC.A-TCANADIAN TIRE CORP-CLASS A73.10123157.18150.55980.17845314.3412915.8413463314.58341065
MRE-TMARTINREA INTERNATIONAL INC72.7028512.6610.18033.60065548.641937.5176539266.529138731
PJC.A-TJEAN COUTU GROUP INC-CLASS A72.0344824.6621.3463-0.684655720.0237923.6044783922.81221092
WFT-TWEST FRASER TIMBER CO LTD71.5100675.1459.046351.34879957.1286312.619046616.67924528
REI.UN-TRIOCAN REAL ESTATE INVST TR71.1771824.9925.25630.6849306-2.11601214.71143151#N.A N.A
CM-TCAN IMPERIAL BK OF COMMERCE71.10504111.82110.33270.59373855.67565810.4094908410.34987042
BPY.UN-TBROOKFIELD PROPERTY PARTNERS70.6958230.8929.807154.6763819.442026#N.A N.A#N.A N.A
SPB-TSUPERIOR PLUS CORP70.644212.7612.205852.0800024.60358448.8697912340.76677316
TOY-TSPIN MASTER CORP-SUB VTG SHR70.5578850.138.827132.9804755.6383933.1721071523.20957828
MNW-TMITEL NETWORKS CORP70.1371910.99.55422.25140419.51754#N.A Field Not Applicable10.28927995
TIH-TTOROMONT INDUSTRIES LTD70.1025257.9647.2208-0.258132738.4855632.2101456925.06920415
BAM.A-TBROOKFIELD ASSET MANAGE-CL A70.0344852.8148.97004-0.471162120.8697726.03232305#N.A N.A
LB-TLAURENTIAN BANK OF CANADA70.0073460.4756.68551.3407078.14667710.251185619.684497117

Source: Bloomberg/Scott Barlow