The S&P/TSX Composite Index dropped a marginal 0.2 per cent for the trading week ending with Thursday’s close and sits 17.0 per cent higher year to date. The benchmark’s Relative Strength Index (RSI) level of 53 puts it in the technical neutral range close to the midway point between the oversold buy signal of 30 and the overbought RSI sell signal of 70.
There are nine index member stocks trading with RSIs below 30, indicating a higher probability of bounce in price from oversold conditions. Turquoise Hill Resources Ltd. is the most oversold companies in the benchmark followed by NFI Group Inc., Stella-Jones Inc. and Canntrust Holdings Inc.
There are 33 S&P/TSX Composite stocks trading in technically vulnerable territory with RSI levels above the sell signal of 70. Eldorado Gold Corp. and Detour Gold Corp. are the two most extended index constituents followed by First Majestic Silver Corp. and Novagold Resources Inc.
Other prominent names on the overbought list include Westjet Airlines Ltd. and Home Capital Group Inc.
There are 26 index stocks hitting new 52-week highs this week, indicating strong price momentum. They are ranked by market capitalization in the table below which is topped by Thomson Reuters Corp., Restaurant Brands International, Barrick Gold Corp. and CGI Inc.
Companies with the weakest price momentum, those hitting 52-week lows, include Husky Energy Inc., Encana Corp., Stars Group Inc. and Mullen Group Ltd.