The domestic equity benchmark continues to climb and continues to be overbought and vulnerable to a temporary pullback, according to Relative Strength Index (RSI).
The S&P/TSX composite rose 0.8 per cent for the trading week ending with Thursday’s close and is higher by a robust 22.8 per cent for 2019.
The index’s current RSI of 77 is well above the sell signal of 70, indicating frothy market conditions for the short term.
There are only three index members trading at oversold, technically attractive RSI levels below the buy signal of 30.
TMX Group Ltd. is the most oversold stock in the benchmark with Frontera Energy Corp. and Semafo Inc. close behind.
There are 25 benchmark constituents trading above the RSI sell signal of 70. National Bank of Canada is the most overbought company in the index, followed by Kinaxis Inc., Stars Group Inc., BRP Inc. Capital Power Corp and Brookfield Asset Management Inc.
Other prominent name son the overbought list include Bank of Montreal and Canadian Tire Corp Ltd..
There are 16 companies showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization below.
Brookfield Asset Management Inc. is the biggest company making new highs. Canadian Imperial Bank of Commerce, Hydro One Ltd. and Air Canada are next on the list.
Happily, there are no S&P/TSX Composite stocks making new 52-week lows this week.