The S&P/TSX Composite eased lower by 0.4 per cent for the trading week ending with Thursday’s close and stands 3.1 per cent higher for 2021.
The benchmark’s Relative Strength Index (RSI) of 65 leaves it at the high end of the technically neutral range, much closer to the RSI overbought sell signal of 70 than the oversold sell signal of 30.
There are three oversold, technically attractive TSX stocks by RSI this week.
Alimentation Couche-Tard Inc. is the most oversold index constituent after falling 16.3 per cent. Extendicare Inc. and Thomson Reuters Corp. are also trading below the RSI buy signal of 30. Ritchie Brothers Auctioneers Inc. and Quebecor Inc. are close to oversold levels but not quite there.
There are 36 overbought, technically vulnerable S&P/TSX Composite members trading above the RSI sell signal of 70. Transalta Corp is the most extended company in the index followed by Bausch Health Co.s Inc., Aphria Inc. and Hexo Corp. Hexo was up 49 per cent for the week.
Other notable names on the overbought list include Toronto-Dominion Bank, Manulife Financial Corp., Crescent Point Energy Corp., Canadian Tire Corp. Ltd. and Fairfax Financial Holdings Ltd.
There are eight benchmark companies showing strong price momentum by establishing new 52-week highs, and they are ranked by market capitalization in the table below. CIBC is the largest stock making new highs, followed by Canopy Growth Corp., Canadian Tire , Blackberry Ltd. and Tourmaline Oil Corp.
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