The S&P/TSX Composite dropped 2.6 per cent for the trading week ending with Friday’s close and now sits 3.3 per cent lower for 2022. The benchmark’s Relative Strength Index (RSI) of 49 leaves it in the technically neutral zone, almost exactly mid-way between the RSI buy signal of 30 and the overbought RSI sell signal of 70.
The list of oversold, technically attractive stocks trading with RSIs below the buy signal is dominated by oi land gas names. The five most oversold companies are Suncor Energy Inc., Algonquin Power and Utilities Corp., Baytex Energy Corp., MEG Energy Corp., and Crescent Point Energy Corp.
There are 12 index members trading in technically vulnerable territory above the 70 sell signal. The five most overbought stocks are Chemtrade Logistics Income Fund, George Weston Ltd., Bombardier Inc., Home Capital Group Inc. and Torex Gold Resources.
There are six stocks showing strong price momentum by hitting new 52-week highs – Loblaw Companies Ltd., George Weston Ltd., Fairfax Financial Holdings, Metro Inc., Turquoise Hill Resources Ltd. and Bombardier Inc.
The are five S&P/TSX Composite constituents making new 52-week lows – Brookfield Renewable Partners, Algonquin Power and Utilities Tricon Residential Inc., Parex Resources Inc. and Algoma Steel Group.