The S&P/TSX Composite dropped 0.8 per cent for the trading week ending with Friday’s close, leaving it 18.7 per cent higher for the year. The benchmark’s Relative Strength Index (RSI) of 51 puts it decidedly in the technically neutral range, almost exactly half way between the oversold buy signal of 30 and the overbought RSI sell signal of 70.
The market pullback left 16 index constituents trading with attractive RSIs below the 30 buy signal. Hexo Corp., ARC Resources Ltd., Labrador Iron Ore Royalty Co., AG Growth International Inc. and Sandstorm Gold Ltd. are the five most oversold companies in the benchmark. Lundin Mining Corp., Enerplus Corp., and Hudbay Minerals are also oversold.
There are still a significant number of S&P/TSX Composite stocks, 27, trading at overbought levels above the RSI sell signal of 70. The most overbought companies are Constellation Software Inc., WSP Global Inc. , Summit Industrial Income REIT, ATS Automation Tooling Systems and Loblaw Companies Ltd. Other prominent names on the overbought list include BCE Inc., Hydro One Ltd., Telus Corp. Royal Bank of Canada and Dollarama Inc.
There are 17 index members showing strong price momentum by hitting new 52-week highs are they are ranked by market capitalization below. The biggest companies making new highs are Royal Bank of Canada, Thomson Reuters Corp., BCE Inc., Alimentation Couche-Tard (B), Constellation Software Inc., Waste Connections Inc. and Telus Corp.
There are three stocks making new lows – Pan American Silver Corp., Fortuna Silver Mines Inc. and IAMGOLD Corp.
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Scott Barlow