The S&P/TSX Composite rose 0.9 per cent for the trading week ending with Friday’s close and stands 19.3 per cent higher for 2021 so far. The index’s Relative Strength Index (RSI) of 64 puts it in the upper reaches of the technically neutral range, far closer to the overbought sell signal of 70 that the oversold RSI buy signal of 30.
There are three stocks trading with attractive RSIs below the 30 buy signal. Real Matters Inc. and Quebecor Inc. are deeply oversold, while Hexo Corp is right at the buy signal.
There are 23 benchmark stocks trading at technically vulnerable, overbought levels according to RSI.
Brookfield Property Partners is the most overbought company and it’s joined by Thomson Reuters Corp., Transalta Corp., Constellation Software Inc. and Brookfield Asset Management (A) in the top five. Other widely-held stocks with overbought RSIs include Loblaw Companies Ltd., Power Corp of Canada, BCE Inc. and Metro Inc.
There are 26 S&P/TSX Composite members showing strong price momentum by hitting new 52-week highs and they are sorted by market capitalization below. Brookfield Asset Management is the largest company making new highs, followed by Thomson Reuters, Canadian Imperial Bank of Commerce, BCE Inc. and Telus Corp.
There are three index stocks - B2Gold Corp., Novagold Resources Inc. and Eldorado Gold Corp. – making new 52-week lows.
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Scott Barlow