The S&P/TSX Composite jumped another 1.2 per cent for the trading week ending with Friday’s close to stand 17.6 per cent higher for 2021.
The benchmark is once again bumping up against overbought conditions. The market’s Relative Strength Index (RSI) of 65 is far closer to the sell signal of 70 than the oversold RSI buy signal of 30.
Precious metals stocks dominate the list of eight technically attractive index constituents trading with RSIs below the 30 buy signal. B2Gold Corp. is the most oversold company in the index and it’s followed by Novagold Resources Inc., Torex Gold Resources Inc., Kinross Gold Corp. and Pretium Resources Inc.
There are 23 S&P/TSX Composite stocks trading in the technically vulnerable range above the RSI sell signal of 70. The most overbought companies in the benchmark are Bombardier Inc., Dream Industrial REIT, AltaGas Ltd., Extendicare Inc., Summit Industrial Income REIT, and Cominar REIT.
There are a large number of index stocks, 18, showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in the table below. Brookfield Asset Management Inc., CGI Inc., Power Corp of Canada, Open Text Corp., and WSP Global are the largest companies hitting new highs.
The list of stocks hitting new 52-week lows is Pan American Silver Corp., B2Gold Corp., Novagold Resources Inc., Equinox Gold Corp. and Torex Gold Resources Inc.
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