The S&P/TSX Composite fell 3.0 per cent for the trading week ending with Friday’ close and is now barely positive year to date at 0.7 per cent. In technical terms the benchmark is almost oversold with a Relative Strength Index (RSI) of 34 that is far closer to the buy signal of 30 than the overbought RSI sell signal of 70.
The list of technically attractive, oversold index members trading below the buy signal is smaller than I expected at nine members. The oversold benchmark stocks are Richelieu Hardware Ltd., Corus Entertainment Inc., Labrador Iron Ore Royalty Co., Altus Group Ltd., Onex Corp., Enghouse Systems Ltd., Hudbay Minerals Inc., Canadian Imperial Bank of Commerce and Shopify Inc.
The list of overbought index companies is short with a strongly defensive focus. Takeout candidate Intertape Polymer Group Inc. heads the list, followed by Atco Ltd., Hydro One Ltd., Canadian Utilities Ltd and Quebecor Inc.
There are only two S&P/TSX Composite stocks showing strong price momentum by hitting new 52-week highs – Hydro One and Atco. The list of companies making new 52-week lows is longer at 14 members and is sorted market capitalization below. The biggest stocks hitting new lows are Shopify Inc., Open Text Corp., First Service Corp., and Onex Corp.
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