The S&P/TSX Composite eased lower by 0.2 per cent for the trading week ending with Friday’s close and sits 4.1 per cent higher for 2022 so far. The benchmark remains in the higher end of technically neutral range according to Relative Strength Index (RSI) with a 59 reading that is closer to the overbought sell signal of 70 than the attractive oversold RSI buy signal of 30.
There is only one index member trading in officially oversold territory and that’s Richelieu Hardware Ltd. I was a bit surprised to see CIBC just slightly above the buy signal with a 31 RSI.
There are 12 benchmark constituents trading with technically vulnerable RSI readings above the 70 sell signal. The most overbought stocks this week are, in order, Intertape Polymer Group Inc., Fairfax Financial Holdings Ltd., Fortis Inc., Hydro One Ltd., Brookfield Infrastructure Partners, Canadian Utilities Ltd. and Rogers Communications Inc.
The 19 index stocks showing strong momentum by making new 52-week highs are sorted by market capitalization in the table below. Enbridge Inc., Imperial Oil Ltd., Brookfield Infrastructure Partners, Rogers Communications and First Quantum Minerals Ltd. head the list.
Three companies – CGI Inc., Dye & Durham Ltd. and Transcontinental Inc. – hit new lows.
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