The S&P/TSX Composite jumped another 1.9 per cent for the week ending with Friday’s close and is now up 12.8 per cent for the year.
Relative Strength Index (RSI) places the benchmark close to technically overbought territory, with a reading of 64 that is far closer to the RSI sell signal of 70 than the oversold buy signal of 30.
There are a lot more oversold technically attractive stocks this week (eight) than I expected after such a strong weekly rally for the index. Renewable power focused stocks dominate the list with Northland Power Inc. the most oversold company in the benchmark and Brookfield Renewable Partners LP, Ballard Power Systems Inc., and Transalta Renewables Inc. also represented.
There are 38 S&P/TSX Composite constituents trading at extended technical levels above the RSI sell signal of 70 this week.
Great-West Lifeco Inc. is the most overbought stock in the index with Russell Metals Inc., Altagas Ltd., Canadian Imperial Bank of Commerce, National Bank of Canada, IGM Financial Inc., Power Corp of Canada, Chemtrade Logistics Income Fund, Equitable group Inc. and Tourmaline Oil Corp following behind.
There is a figurative ocean of stocks hitting new 52-week highs, 43 of them. The largest 25 by market cap are listed in the table below.
There are two benchmark companies hitting new 52-week lows – Aurinia Pharmaceuticals Inc. and Centerra Gold Inc..
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Scott Barlow