The week’s most oversold and overbought stocks on the TSX

Scott BarlowMarket Strategist

Published January 8, 2021

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The S&P/TSX Composite climbed an impressive 3.5 per cent for 2021′s first trading week ending with Thursday’s close.

The rally leaves the benchmark firmly in overbought territory according to Relative Strength Index (RSI) as the current reading of 72 is above the sell signal of 70.

There are, predictably, a large number of index constituents (35) trading at frothy, overbought levels.

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Energy stocks top the list of most overbought companies as Husky Energy Inc., Innergex Renewable Energy Inc., TransAlta Corp. and Transalta Renewables Inc. are the most extended stocks in the benchmark.

The market rotation to economically sensitive equity assets is clear in the overbought list this week as it’s difficult to find stocks not from commodities, industrials or banks sectors.

There is one S&P/TSX Composite company, Emera Inc., that finished the week with a technically attractive, oversold RSI below the buy signal of 30 after the utility fell more than four per cent. Chartwell Retirement Residences is right on the border of oversold with an RSI at 30.

There are 26 benchmark stocks showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in the table below. Canadian Pacific Railway Ltd., Brookfield Renewable Partners LP and First Quantum Minerals Ltd. are the three largest companies making new highs.

There are no index stocks hitting new 52-week lows.

Stocks hitting 52-week highs

		Return 1W %	Return YTD %	Market Cap
CP-T	CANADIAN PACIFIC RAILWAY LTD	6.39	6.39	63,846,361,701
BEP-UN-T	BROOKFIELD RENEWABLE PARTNER	12.10	12.10	25,424,360,589
FM-T	FIRST QUANTUM MINERALS LTD	14.75	14.75	17,924,680,644
WEED-T	CANOPY GROWTH CORP	23.79	23.79	14,089,456,823
TECK-B-T	TECK RESOURCES LTD-CLS B	8.96	8.96	13,129,824,655
CCL-B-T	CCL INDUSTRIES INC - CL B	5.99	5.99	10,976,736,823
CTC-A-T	CANADIAN TIRE CORP-CLASS A	4.06	4.06	10,712,504,395
BLDP-T	BALLARD POWER SYSTEMS INC	19.68	19.68	10,069,113,276
NPI-T	NORTHLAND POWER INC	5.47	5.47	9,922,212,540
IVN-T	IVANHOE MINES LTD-CL A	11.81	11.81	9,076,985,366
LUN-T	LUNDIN MINING CORP	9.29	9.29	8,802,800,994
CCO-T	CAMECO CORP	9.15	9.15	7,240,027,089
INE-T	INNERGEX RENEWABLE ENERGY	14.65	14.65	5,614,519,686
BLX-T	BORALEX INC -A	10.92	10.92	5,546,112,370
FTT-T	FINNING INTERNATIONAL INC	9.14	9.14	4,780,432,303
LNR-T	LINAMAR CORP	6.20	6.20	4,664,671,175
MX-T	METHANEX CORP	4.02	4.02	4,514,617,740
SJ-T	STELLA-JONES INC	3.69	3.69	3,175,756,427
CFP-T	CANFOR CORP	2.26	2.26	2,963,943,198
HBM-T	HUDBAY MINERALS INC	7.74	7.74	2,411,541,954
ATA-T	ATS AUTOMATION TOOLING SYS	10.60	10.60	2,286,311,030
SEA-T	SEABRIDGE GOLD INC	7.58	7.58	2,063,830,799
ERO-T	ERO COPPER CORP	10.68	10.68	1,907,931,768
ECN-T	ECN CAPITAL CORP	6.49	6.49	1,694,187,816
IFP-T	INTERFOR CORP	1.60	1.60	1,601,142,096
RUS-T	RUSSEL METALS INC	2.86	2.86	1,448,909,987

This week's overbought and oversold stocks

	OVERSOLD STOCKS	RSI	Price	200DMA	Return 1W %	Retrun YTD %	PE Ratio TTM	PE Ratio Fwd
EMA-T	EMERA INC	26.17	52.38	54.32	-4.09	-4.09	21.01	16.71

	OVERBOUGHT STOCKS	RSI	Price	200DMA	Return 1W %	Retrun YTD %	PE Ratio TTM	PE Ratio Fwd
HSE-T	HUSKY ENERGY INC	#N/A N/A	6.76	#N/A N/A	#N/A N/A	#N/A N/A	#N/A N/A	#N/A N/A
INE-T	INNERGEX RENEWABLE ENERGY	85.95	32.12	22.02	14.65	14.65	#N/A N/A	87.28
TA-T	TRANSALTA CORP	84.68	10.49	8.32	7.86	7.86	#N/A N/A	#N/A N/A
RNW-T	TRANSALTA RENEWABLES INC	83.78	23.85	16.02	8.69	8.69	49.65	27.45
BLX-T	BORALEX INC -A	83.28	54.24	34.15	10.92	10.92	115.79	83.06
EQB-T	EQUITABLE GROUP INC	82.61	111.00	77.12	9.62	9.62	9.23	7.82
BEP-UN-T	BROOKFIELD RENEWABLE PARTNER	79.97	62.68	41.25	12.10	12.10	#N/A N/A	#N/A N/A
IVN-T	IVANHOE MINES LTD-CL A	79.94	7.52	4.51	11.81	11.81	#N/A N/A	#N/A N/A
FM-T	FIRST QUANTUM MINERALS LTD	79.68	26.28	12.63	14.75	14.75	#N/A N/A	31.11
LUN-T	LUNDIN MINING CORP	79.51	12.06	7.81	9.29	9.29	47.38	17.14
CP-T	CANADIAN PACIFIC RAILWAY LTD	78.54	475.65	376.20	6.39	6.39	27.38	24.15
FTT-T	FINNING INTERNATIONAL INC	77.62	29.54	20.47	9.14	9.14	27.81	18.56
ECN-T	ECN CAPITAL CORP	76.26	6.92	4.85	6.49	6.49	47.36	12.11
CVE-T	CENOVUS ENERGY INC	74.66	8.61	5.76	11.10	11.10	#N/A N/A	#N/A N/A
RUS-T	RUSSEL METALS INC	74.33	23.25	17.71	2.86	2.86	60.27	16.95
IMO-T	IMPERIAL OIL LTD	74.27	27.87	20.73	15.52	15.52	#N/A N/A	36.53
ATA-T	ATS AUTOMATION TOOLING SYS	74.21	24.77	19.10	10.60	10.60	41.45	20.76
BLDP-T	BALLARD POWER SYSTEMS INC	73.83	35.93	20.09	19.68	19.68	#N/A N/A	#N/A N/A
TD-T	TORONTO-DOMINION BANK	73.74	74.28	62.35	4.07	4.07	11.49	12.80
SLF-T	SUN LIFE FINANCIAL INC	73.60	61.32	52.37	7.23	7.23	16.95	10.72
GC-T	GREAT CANADIAN GAMING CORP	73.34	43.24	28.76	-0.62	-0.62	293.98	#N/A N/A
HCG-T	HOME CAPITAL GROUP INC	73.00481	31.56	22.3408	6.094276	6.094276	10.7346937	8.136117556
CCO-T	CAMECO CORP	73.00	18.36	13.97	9.15	9.15	#N/A N/A	#N/A N/A
PSI-T	PASON SYSTEMS INC	72.82	8.55	6.70	7.99	7.99	44.58	#N/A N/A
BHC-T	BAUSCH HEALTH COS INC	72.61	29.17	23.86	9.54	9.54	#N/A N/A	5.64
CPG-T	CRESCENT POINT ENERGY CORP	72.50	3.52	2.08	17.51	17.51	11.08	49.58
MFC-T	MANULIFE FINANCIAL CORP	72.47	24.04	19.07	5.78	5.78	9.11	7.83
NPI-T	NORTHLAND POWER INC	72.29	48.97	36.74	5.47	5.47	24.25	27.60
SES-T	SECURE ENERGY SERVICES INC	71.92	3.04	1.63	24.39	24.39	#N/A N/A	#N/A N/A
NTR-T	NUTRIEN LTD	70.92	65.05	51.45	6.96	6.96	35.57	24.87
LNR-T	LINAMAR CORP	70.54	71.35	43.73	6.20	6.20	17.68	11.63
CFP-T	CANFOR CORP	70.28	23.75	14.60	2.26	2.26	9.74	5.29
MAG-T	MAG SILVER CORP	70.20	26.75	19.74	7.87	7.87	#N/A N/A	397.35
ERF-T	ENERPLUS CORP	70.05	4.62	3.31	15.83	15.83	#N/A N/A	16.86
CHE-UN-T	CHEMTRADE LOGISTICS INCOM FD	70.02	6.10	5.19	5.32	5.32	#N/A N/A	#N/A N/A

Source: Bloomberg

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