The S&P/TSX Composite enjoyed a strong trading week to Thursday’s close, climbing 1.8 per cent to stand 17.7 per cent higher for the year.
In technical terms, the benchmark’s Relative Strength Index (RSI) reading of 63 leaves it in neutral territory, although much closer to the overbought RSI sell signal of 70 than the oversold buy signal of 30.
There are four technically attractive, oversold index members according to RSI this week. Gran Tierra Energy Inc. is the most oversold company in the benchmark, followed by Maple Leaf Foods Inc., NuVista Energy Ltd., and Blackberry Ltd.
The market rally leaves a far larger number of index stocks (14) in overbought territory, indicating a higher potential for a price correction. Detour Gold Corp. is the frothiest company in the benchmark with Ivanhoe Mines Ltd., WestJet Airlines Ltd., Eldorado Gold Corp., Richelieu Hardware Ltd. and Novagold Resources Inc. close behind.
TSX stocks with the strongest price momentum – those hitting 52 week highs – are sorted by market capitalization below. Restaurant Brands International Inc. is the largest company making new highs. Brookfield Infrastructure Partners, Air Canada and Chorus Aviation Inc. are also on the list.
There are two S&P/TSX Composite members making new 52 week lows this week – Gran Tierra Energy and Oceanagold Corp.