The S&P/TSX Composite eased lower by a half a per cent for the trading week ending with Friday’s close and now stands 12.2 per cent higher for 2021.
The index’s Relative Strength Index (RSI) reading of 57 leaves it in the higher end of technically neutral territory, closer to the overbought sell signal of 70 than the oversold, technically attractive RSI buy signal of 30.
There are 11 oversold benchmark stocks trading below the RSI buy signal this week. Logistics software provider Enghouse Systems Ltd is the most oversold company in the index, and it’s followed by Northland Power Inc., Altus Group Ltd., Descartes Systems Group, Cascades Inc. and Boralex Inc.
The overbought list of stocks is still sizeable at 23 members.
Keyera Corp is the frothiest company in the index by RSI with Great-West Lifeco Inc., Russell Metals Inc. Home Capital Group Inc. and Equitable Group Inc. close behind. Other widely-held names on the overbought list include Canadian Imperial Bank of Commerce, National Bank of Canada, Imperial Oil Ltd., Toronto-Dominion Bank, Royal Bank of Canada and Baytex Energy Corp.
There are 29 S&P/TSX Composite stocks showing strong price momentum by hitting new 52 week highs and they are ranked by market capitalization in the table below. The banks dominate the top of the list as the top five includes Royal Bank, TD Bank, Bank of Nova Scotia and Bank of Montreal. REITs are well represented by Choice Properties REIT, Canadian Apartment Properties REIT, Dream Industrial REIT and Chartwell Retirement Residences REIT.
There is one company, Enghouse Systems, hitting new 52-week lows.
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