The S&P/TSX Composite rose 0.7 per cent for the trading week ending with Thursday’s close and stands 5.5 per cent higher for 2020 so far.
In technical terms, the benchmark is now overbought according to Relative Strength Index (RSI) and is vulnerable to a temporary dip in the short term. The index’s RSI of 72 is marginally above the sell signal of 70.
RSI highlights four stocks trading at attractive technical levels below the buy signal of 30. Pretium Resources Inc. is the most oversold stock in the index, Dollarama Inc., MTY Food Group Inc. and Knight Therapeutics Inc. round out the list.
There are 44 S&P/TSX Composite companies trading at frothy RSI levels above the 70 sell signal. Northview Apartment REIT is the most overbought benchmark constituent, followed by Boralex Inc., Northland Power Inc., and Killam Apartment REIT.
Other notable names on the overbought list include TC Energy Corp., Hydro One Ltd., Shopify Inc., George Weston Ltd., and Barrick Gold Corp.
There are 24 index members showing strong price momentum by hitting new 52-week highs this week and they are ranked by market capitalization below.
Brookfield Asset Management Inc. is the largest stock making new highs – TC Energy Corp., Brookfield Infrastructure Partners LP, Pembina Pipeline Corp., and National Bank of Canada are next.
There are three companies bucking the bullish trend, hitting new 52-week lows – Teck Resources Ltd., MTY Food Group Inc. and Enerflex Ltd.