The S&P/TSX Composite climbed 2.0 per cent for the trading week ending with Thursday’s close, and, since the benchmark was flat year to date last week, it’s now 2.0 per cent higher for 2020.
The index is fast approaching overbought territory with a Relative Strength Index (RSI) of 65. This is far closer to the overbought sell signal of 70 than the oversold buy signal of 30.
There are four technically attractive index constituents this week according to RSI. Wesdome Gold Mines Ltd. is the most oversold company this week, and it’s followed by BRP Inc., Altus Group Ltd. and Kirkland Lake Gold Ltd.
There are almost 40 technically vulnerable S&P/TSX Composite stocks trading above the RSI sell signal of 70 this week. The most overbought stocks are a mix of industrials, real estate and financial firms. Linamar Corp and H&R REIT are the most overbought companies. The top 25 most overbought stocks also features Home Capital Group Inc., Intertape Polymer Group Inc., Toronto-Dominion Bank, Bank of Nova Scotia, Aecon Group Inc. and Boardwalk REIT.
There are four benchmark companies showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization below.
Norbord Inc. is the biggest stock making new highs and it’s joined by Hudbay Minerals Inc., Transcontinental Inc. and Interfor Corp.
There are no index companies hitting new 52-week lows.
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Scott Barlow