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The S&P/TSX Composite fell 1.1 per cent for the trading week ending with Thursday’s close, and the benchmark’s total return sits at negative 6.4 per cent for 2018.

The benchmark is not yet oversold, according to Relative Strength Index (RSI , with a reading of 38 that is closer to the RSI buy signal of 30 than the overbought sell signal of 70, but still in neutral territory.

There are 24 oversold index member stocks trading below the RSI buy signal.

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Bank of Montreal is the most oversold stock in the benchmark, followed by Peyto Exploration & Development Corp., Power Financial Corp., Great-West Lifeco Inc., Russell Metals Inc., Power Corp of Canada, Superior Plus Corp and Exchange Income Corp.

I chose Brookfield Property Partners as the focus chart this week, with some hope that the trust’s hefty 7.6-per-cent indicated distribution yield will help motivate a bounce in the price.

The unit price has been sensitive to RSI buys signals over the past 24 months although rallies have been brief in some cases. A buy signal in August 2017 was followed quickly by a marginal jump higher, but only temporarily before selling pressure resumed. A September 2017 buy signal forecast a 9.1-per-cent rally before the end of October although again, the price weakened afterwards.

A series of RSI buy signals in March and April 2018 made up the most successful indicator on the chart as a significant 15.7-per-cent rally occurred, and that figure does not include the distribution payments.

As an entry point, the current buy signal would be more interesting if the price makes a base by moving sideways for a few trading sessions. Fundamental research is important as always before any market transaction, in this case to ensure the sustainability of the distribution yield.

There are seven overbought, technically vulnerable S&P/TSX Composite companies by RSI this week led by Kirkland Lake Gold Ltd and Metro Inc. Empire Co., Tahoe Resources Inc., Sandstorm Gold Ltd., Franco-Nevada Corp. and Northland Power complete the list.

RSI Price 200DMA Return 1W % Return YTD % PE Ratio TTM PE Ratio Fwd
BMO-T BANK OF MONTREAL 18.42321 90.07 101.0189 -4.078807 -7.027283 10.18436789 9.422533738
PEY-T PEYTO EXPLORATION & DEV CORP 19.68674 8.16 10.803 -13.0064 -42.33381 8.479877798 15.02762431
PWF-T POWER FINANCIAL CORP 20.12196 26.15 30.7563 -3.966214 -21.03632 9.388471108 7.641729982
GWO-T GREAT-WEST LIFECO INC 20.39842 27.95 32.0913 -4.182379 -16.45815 6.621369887 8.961205515
RUS-T RUSSEL METALS INC 20.91328 20.8 27.4118 -4.543368 -24.70489 6.386160464 7.098976109
POW-T POWER CORP OF CANADA 21.17976 24.56 28.83382 -3.014482 -19.99015 6.615534403 7.596659449
SPB-T SUPERIOR PLUS CORP 23.47794 9.6 12.45445 -6.705539 -14.67988 #N/A N/A 12.54901961
EIF-T EXCHANGE INCOME CORP 24.3694 26.79 32.15615 -8.566553 -20.05388 12.43640832 8.661493695
IAG-T INDUSTRIAL ALLIANCE INSURANC 25.19737 43.81 51.42765 -3.18232 -24.50956 8.009141019 7.586147186
BIR-T BIRCHCLIFF ENERGY LTD 25.37593 3.07 4.3787 -8.358209 -28.87716 11.7955789 8.976608187
SW-T SIERRA WIRELESS INC 25.4269 19.06 22.79507 -10.85126 -25.83658 #N/A N/A 13.15573337
DOO-T BRP INC/CA- SUB VOTING 26.00621 36.2 55.82075 -10.83744 -21.79698 12.21643224 10.72592593
CIGI-T COLLIERS INTERNATIONAL GROUP 26.05215 73.36 94.0514 -11.18644 -3.244096 20.18607043 12.54284687
CHR-T CHORUS AVIATION INC 26.58529 5.69 7.41985 -6.414474 -37.54661 8.085981491 4.487381703
AAV-T ADVANTAGE OIL & GAS LTD 26.61249 2.11 3.6854 -7.456141 -60.92593 #N/A N/A 17.15447154
AX-UN-T ARTIS REAL ESTATE INVESTMENT 27.57004 9.36 12.45015 -3.703704 -28.50482 7.610127044 #N/A N/A
ECA-T ENCANA CORP 27.839 8.29 15.098 -3.48403 -50.26019 9.821560178 7.13270451
SCL-T SHAWCOR LTD 28.19028 17.72 24.80875 -5.54371 -33.77919 22.60154986 32.87569573
BPY-UN-T BROOKFIELD PROPERTY PARTNERS 28.36749 22.21 25.3954 -5.004277 -14.9637 #N/A N/A #N/A N/A
LB-T LAURENTIAN BANK OF CANADA 28.46667 37.82 45.3731 -2.926078 -30.20227 6.966378052 7.316695686
CFP-T CANFOR CORP 28.7884 15.18 27.3674 -13.94558 -38.74092 3.065093314 12.37163814
CHE-UN-T CHEMTRADE LOGISTICS INCOM FD 28.87941 10.37 14.7482 -7.24508 -42.46973 122.7393226 9.923444976
PD-T PRECISION DRILLING CORP 29.70111 2.64 4.16115 -6.049822 -30.70866 #N/A N/A #N/A N/A
LUC-T LUCARA DIAMOND CORP 29.94904 1.62 2.0984 -1.818182 -39.36241 39.55465089 9.306600886
RSI Price 200DMA Return 1W % Return YTD % PE Ratio TTM PE Ratio Fwd
KL-T KIRKLAND LAKE GOLD LTD 85.50157 33.39 25.07185 10.85657 73.85654 22.35156127 17.9141667
MRU-T METRO INC 76.98944 47.21 42.32345 2.809233 19.39999 19.47332476 16.40945429
EMP.A-T EMPIRE CO LTD 'A' 76.83534 28.51 24.7469 10.76146 18.46082 22.01348933 16.01685393
THO-T TAHOE RESOURCES INC 73.21407 4.94 5.339675 3.781512 -18.07628 #N/A N/A #N/A N/A
SSL-T SANDSTORM GOLD LTD 71.38705 5.92 5.56975 6.283662 -5.732484 78.75329382 46.5390516
FNV-T FRANCO-NEVADA CORP 71.1932 97.76 89.4784 3.87844 -1.316132 61.14014584 63.81967611
NPI-T NORTHLAND POWER INC 70.53705 23.19 22.81735 1.576873 4.252216 18.00078751 #N/A N/A

Source: Scott Barlow/Bloomberg

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