The S&P/TSX Composite eased lower by 0.41 per cent for the trading week ending with Friday’s close and stands 5.8 per cent higher for 2021.
The benchmark is in the higher end of technically neutral territory with a Relative Strength Index (RSI) of 61 that is closer to the overbought RSI sell signal of 70 than the oversold buy signal of 30.
There are a lot more technically attractive index member stocks – 13 - than we’ve seen lately in today’s list, thanks to the precious metals sector. Barrick Gold Corp. is the most oversold company in the benchmark, and Maple Leaf Foods Inc, Ritchie Brothers Auctioneers, Franco-Nevada Corp. and Agnico Eagle Mines Ltd. lined up behind.
Bond yield-sensitive, dividend-paying sectors are also well represented on the oversold list this week. Examples of this trend include Emera Inc. and Fortis Inc.
There are 23 overbought, technically vulnerable S&P/TSX Composite companies trading with RSIs above the sell signal of 70. Inter Pipeline Ltd., is the most extended stock in the index, followed by TransAlta Corp., Lundin Mining Corp., Frontera Energy Corp., Cineplex Inc. and Equitable Group Inc.
There are no stocks in the benchmark making either new 52-week highs or lows, which is rare. This may indicate a higher degree of churn – rotation from one sector to another – than usual.
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