The S&P/TSX Composite climbed a robust 4.0 per cent for the five trading days ending with Monday’s close and stands 4.3 per cent higher for 2022. The benchmark’s Relative Strength Index (RSI) of 66 leaves it very close to overbought territory – the sell signal is 70.
There are two index constituents trading with technically attractive, oversold RSIs below the buy signal of 30. Great-West Lifeco Inc. is now oversold after dropping 2.3 per cent for the week and Boyd Group Services Inc. is also under the buy signal after falling 5.0 per cent.
There are only five technically vulnerable overbought stocks this week which is a remarkably small number given the index’s surge higher. In order, these are Intertape Polymer Group Inc., Brookfield Infrastructure Partners, ECN Capital Corp., First Quantum Minerals Ltd., and Nutrien Ltd.
There are 17 S&P/TSX Composite stocks showing strong price momentum by hitting new 52-week highs and they are sorted by market capitalization in the table below. The five largest companies making new highs are Enbridge Inc., Bank of Montreal, Canadian Pacific Railway Ltd., Canadian Natural Resources, and Nutrien Ltd.
There is only one stock hitting new lows and that is Boyd Group Services.
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