The S&P/TSX Composite Index finished higher by 0.2 per cent for the five days of trading that ended with Thursday’s close, bringing the year to date total return to 21.9 per cent. The benchmark remains overbought according to Relative Strength Index (RSI) – the current reading of 75 is well above the sell signal of 70, indicating a higher likelihood of a temporary pullback.
There are only five benchmark constituents trading in technically attractive, oversold territory with RSIs below the buy signal of 30. Pason Systems Inc. is the most oversold company in the index and H&R REIT, Semafo Inc., Oceanagold Corp. and Frontera energy Corp. follow.
There are 24 index stocks trading at overbought RSI levels above the sell signal of 70. National Bank is the TSX’s most overbought stock followed by Kinaxis Inc. and Stars Group Inc. Other prominent names on the overbought list include Transalta Renewables Inc., Home Capital Group Inc., Bombardier Inc. and Boardwalk Inc.
There are 12 S&P/TSX Composite stocks showing strong price momentum by hitting new 52-week highs, and they are ranked by market capitalization below. Royal Bank, Thomson Reuters Corp. and Constellation Software Inc. are the three biggest companies making new highs this week.
Oceanagold Corp is the only index stock hitting new 52-week lows.
Scott Barlow