The S&P/TSX Compoiste was almost exactly flat for the trading week ending with Friday’s close, up a scant 0.05 per cent, and is now higher by 8.8 per cent for 2021.
The benchmark’s Relative Strength Index (RSI) of 61 leaves it in the higher end of the technically neutral range, closer to the overbought sell signal of 70 than the oversold RSI buy signal of 30.
Renewable power stocks continue to take a beating, leaving Innergex Renewable Energy Inc. and Boralex Inc. as the only two oversold, technically attractive stocks by RSI this week. Cargojet Inc. and Real Matters Inc. are closest to oversold territory, both with RSIs of 36.
The list of technically vulnerable, overbought index companies is less than half the size of last week at 20 members. Banks dominate the list with National Bank of Canada the most overbought stock, Canadian Imperial Bank of Commerce the third, and Laurentian Bank, Toronto-Dominion Bank, Bank of Montreal and Royal Bank of Canada also represented. Other prominent names on the overbought list include Shaw Communications Inc. for takeover reasons, Power Corp. of Canada and Cominar REIT.
Data for the table this week are as 11 a.m. (ET) Monday.
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Scott Barlow