The S&P/TSX Composite rose an impressive 1.5 per cent for the trading week ending with Friday’s close but its up only 1.2 per cent for the year.
Relative Strength Index (RSI) leaves the benchmark in the higher end of technically neutral territory with a 56 reading that is closer to the overbought sell signal of 70 than the oversold RSI buy signal of 30.
Both the oversold and overbought lists of benchmark members is long this week which implies a more bifurcated market than usual. There are 20 oversold, technically attractive TSX stocks. The five most oversold companies are, in order, Martinrea International Inc., Linamar Corp., Altus Group Ltd., Enghouse Systems Ltd. and Aritzia Inc.
There are 38 overbought, technically vulnerable S&P/TSX Composite stocks this week. The top five most extended stocks are Labrador Iron Ore Royalty Co., Nutrien Ltd., Dream Office REIT, Pembina Pipeline Corp. and MEG Energy Corp.
There are 39 index members, a lot more than usual, demonstrating strong price momentum by making new 52-week highs. They are sorted by market capitalization in the table below. Enbridge Inc. is the largest stock hitting new highs, followed by Canadian Natural Resources Ltd., TC Energy Corp., Nutrien Ltd., and BCE Inc.
The list of companies hitting new 52-week lows is also sizeable at 21 members. The largest stocks are Shopify Inc., Magna International Inc., Bausch Health Companies Ltd., BRP Inc. and Lightspeed Commerce Inc.
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