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The S&P/TSX Composite dropped 0.85 per cent for the week ending with Thursday's close ,and the benchmark's multi-week streak of being technically overbought and frothy has reached an end.

The index's current Relative Strength Index (RSI) reading of 53 is in a neutral range, roughly equidistant from the sell signal of 70 and the RSI oversold buy signal of 30.

There are 19 index members trading at oversold, technically attractive levels according to RSI this week. Energy and precious metals names dominate the list which includes Enbridge Inc., Just Energy Group Inc., Centerra Gold Inc. and Barrick Gold Corp.

I picked Onex Corp as the focus this week, primarily because I was surprised that the cash-heavy, usually stodgily (if positively) performing stock was so deeply oversold.

Onex's two-year history confirms that the stock is rarely oversold. There were two periods, in February 2016 and January 2017, when Onex was right on the border of the RSI buy signal of 30, but the stock recovered before reaching officially oversold territory.

Onex did hit oversold RSI levels in August of this year, but a marginal rally after that was followed by further declines. Fundamental analysis might tell a different, more optimistic story, but this is a case, unfortunately, where RSI isn't much help – there isn't enough precedents to determine whether the buy signal is reliable. The current price is well below the 200-day moving average trend line, indicating the possibility of continued weakness.

There are 14 overbought, technically vulnerable S&P/TSX Composite constituents this week, a big decline from recent weeks. Online gaming provider Stars Group Inc is the most overbought stock in the index followed by Dollarama Inc., Colliers International Group, BCE Inc. and Bank of Nova Scotia.

RSIPrice200DMAReturn 1W %Return YTD %PE Ratio TTMPE Ratio Fwd
ENB-TENBRIDGE INC14.2694244.0152.5954-4.017338-18.3525825.4072452620.08671839
UNS-TUNI-SELECT INC16.2103723.8330.40257-4.641857-18.4765814.6056492812.51116776
JE-TJUST ENERGY GROUP INC16.717885.757.35585-9.018988-17.5215117.873184328.725341426
CAS-TCASCADES INC25.0128912.5515.1801-12.299094.60445513.75760115#N/A N/A
CG-TCENTERRA GOLD INC25.492247.57.5243-2.47074119.236887.7431657136.073919102
ABX-TBARRICK GOLD CORP25.676917.7622.2111-0.7266629-16.9388114.9992872917.6627401
ONEX-TONEX CORPORATION25.7527791.3597.49665-3.1077640.2665496#N/A N/A274.2963178
TXG-TTOREX GOLD RESOURCES INC26.1297714.0122.76852.262774-32.6118373.2024827512.03258743
ELD-TELDORADO GOLD CORP26.407281.513.49675-6.21118-64.86932#N/A N/A30.22714394
RBA-TRITCHIE BROS AUCTIONEERS27.5789632.1239.2229-10.15385-28.2883825.486760227.86235369
SSRM-TSSR MINING INC27.6688711.0313.19595-1.517857-8.15986622.356067956.65218939
SW-TSIERRA WIRELESS INC27.9615624.2532.9315-1.94096215.3663242.9754113518.25651004
PAAS-TPAN AMERICAN SILVER CORP28.1918.8322.5438-1.258521-6.6240522.0543972421.90849646
LNR-TLINAMAR CORP28.384266.7865.755251.19715116.408178.314271867.810526316
EFX-TENERFLEX LTD28.6031415.6417.8825-5.212121-6.9198721.8600014314.28310502
NG-TNOVAGOLD RESOURCES INC29.084854.95.86135-5.950096-20.19544#N/A N/A#N/A N/A
CJR.B-TCORUS ENTERTAINMENT INC-B SH29.1936611.3413.1037-3.095345-2.50461410.3718406810.22542831
MTL-TMULLEN GROUP LTD29.4718915.3816.0836-5.412054-21.0003526.7625806121.01092896
VII-TSEVEN GENERATIONS ENERGY - A29.6932616.5822.0792-19.20078-47.0456719.106357116.06589147
RSIPrice200DMAReturn 1W %Return YTD %PE Ratio TTMPE Ratio Fwd
TSGI-TSTARS GROUP INC/THE84.8476628.322.99253.70098948.8690116.979196359.647965171
DOL-TDOLLARAMA INC80.34608151.49122.10924.87365954.5457336.6903475531.77889658
CIGI-TCOLLIERS INTERNATIONAL GROUP75.6520877.266.503452.42802256.1285932.0995356219.93718905
BCE-TBCE INC74.7642161.4959.348751.1348689.92379817.9277779917.76140959
BNS-TBANK OF NOVA SCOTIA74.5571183.9978.57710.478526115.6753212.9711177412.31163882
MRE-TMARTINREA INTERNATIONAL INC72.9288514.1810.7070512.1835466.488368.0404678816.873485216
ARE-TAECON GROUP INC72.7328619.5816.479550.668380431.3170631.1343690125.62827225
HCG-THOME CAPITAL GROUP INC72.6352715.0916.66774.791667-51.3851118.677545798.583617747
CAR.UN-TCAN APARTMENT PROP REAL ESTA72.3413536.8633.5195-0.243572421.3007521.8335959#N/A N/A
FNV-TFRANCO-NEVADA CORP72.11649108.2294.798851.14018736.0978573.5241392579.03411567
BCB-TCOTT CORPORATION71.9369921.0517.854410.4986940.34622#N/A N/A64.19436521
FTS-TFORTIS INC71.1702748.5944.80350.955744920.4428619.5896297718.31511496
T-TTELUS CORP70.7615748.1244.794751.26262616.3913318.4069914917.28448276
NVU.UN-TNORTHVIEW APARTMENT REAL EST70.671332522.0307-0.0399840132.5603614.02709474#N/A N/A

Source: Bloomberg/Scott Barlow

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