The S&P/TSX Composite index was higher by another 1.1 per cent for the trading week ending with Thursday’s close and stands 21.6 per cent higher for 2019.
The big news this week is that the benchmark itself is overbought, according to Relative Strength Index (RSI), indicating a higher likelihood of a temporary market correction in the days ahead. The index’s RSI of 77 is well above the overbought signal of 70.
There are six oversold, technically attractive benchmark constituents trading with RSIs below the oversold buy signal of 30.
Shawcor Ltd. is the most oversold stock in the index with Semafo Inc., Pason Systems Inc., Hexo Corp., Canopy Growth Corp. and Maple Leaf Foods Inc. lining up behind.
There are a large number of TSX stocks – 42 – trading at overbought levels with RSI readings above 70.
Alaris Royalty Corp. is the most overbought company in the index, followed by National Bank of Canada, Power Financial Corp., Home Capital Group Inc., Bausch Health Co.s Inc., and Gibson Energy Inc.
Widely-held names in the rest of the list include SNC-Lavalin Group Inc., Manulife Financial Corp and Canadian Pacific Railway Inc.
There are 26 stocks showing strong price momentum by hitting new 52-week highs this week and they are ranked by market capitalization in the accompanying table. The largest company making new highs is Brookfield Asset Management Inc.. CGI Inc., Air Canada and Cominar REIT are also on the list.
Canopy Growth Corp is the biggest company making new 52-week lows with competitor Aurora Cannabis Inc. right behind. Cronos Group Inc., Pason Systems Inc., Fronterra Energy Corp. Hexo Corp. and Gran Tierra Energy Inc. make up the remainder of the list.