The S&P/TSX Composite was again higher for the trading week ending with Thursday’s close although only by 0.4 per cent. Year-to-date, the benchmark is up 6.8 per cent including dividends.
According to Relative Strength Index (RSI), the TSX remains very close to overbought, technically vulnerable levels with an RSI of 68 that is butting up against the sell signal of 70.
There are no officially oversold, attractive benchmark stocks trading below the RSI buy signal of 30 but there is one surprise. Metro Inc., a company that has benefitted from pandemic conditions, is very close to oversold with an RSI of 31 after falling 1.9 per cent for the week.
There are 30 S&P/TSX Composite stocks trading at overbought levels. Labrador Iron Ore Royalty Co. is the frothiest company in the index followed by Interfor Corp., WSP Global Inc., Linamar Corp. and First Quantum Minerals Ltd.
Other prominent overbought names include MEG Energy Corp., TransAlta Renewables Inc., Finning International Inc., Bank of Nova Scotia, Blackberry Ltd. and Toronto Dominion Bank.
There 15 index constituents showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization below.
Shopify Inc. put in another new high and it’s the largest company to do so this week. First Quantum Minerals, CCL Industries Inc., BRP Inc. and West Fraser Timber Co. Ltd are next in line.
There are no benchmark stocks making new 52-week lows.
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Scott Barlow