The S&P/TSX Composite leapt 2.0 per cent for the trading week ending with Friday’s close to stand 25.9 per cent higher for 2021 so far. The benchmark’s Relative Strength Index (RSI) at 67 leaves it very close to overbought, technically vulnerable territory given the RSI sell signal of 70.
There are two technically attractive, oversold index stocks trading below the 30 buy signal this week. Aecon Group Inc. is the most oversold company in the benchmark and Algonquin Power & Utilities Corp. is close behind. Martinrea International Inc. is near oversold with an RSI of 31.
There are 29 TSX stocks trading at overbought levels above the 70 sell signal. The ten most overbought companies are, in order, Maple Leaf Foods Inc., Primo Water Corp., IGM Financial Inc., Pason Systems Inc., Ritchie Brothers Auctioneers, Canada Goose Holdings Inc., Celestica Inc., TD Bank, Smartcentres REIT and Home Capital Group Inc.
There are 26 index members showing strong price momentum by hitting new 52-week highs and they are sorted by market capitalization below. The ten largest companies making new highs are TD Bank, Brookfield Asset Management Inc., Enbridge Inc., Canadian Natural Resources Ltd., Cenovus Energy Inc., Brookfield Infrastructure Partners, Tourmaline Oil Corp., CAE Inc., IGM Financial and Arc Resources Ltd.
Three stocks, Algonquin Power & Utilities, Canopy Growth Corp. and Martinrea International Inc. are making new lows.
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Scott Barlow