On Feb. 21, the S&P/TSX Composite was trading at overbought, frothy technical levels according to Relative Strength Index (RSI) with a reading of 72 that was above the RSI sell signal of 70.
After falling 6.7 per cent for the trading week ending with Thursday’s close, the benchmark’s current RSI of 24 puts it close to the oversold buy signal of 20.
Last week, there were more than 40 index stocks trading at overbought technical levels with RSIs above the 70 sell signal. This week there are two – Northview Apartment REIT and Killam Apartment REIT.
There are over 100 index constituents trading at attractive RSI levels below the buy signal of 30 – too many to include in the table below, which shows only the 25 most oversold stocks.
The most prominent names in the table include Bank of Montreal – the second most oversold company in the benchmark – Shaw Communications Inc., Inter Pipeline Ltd., Air Canada, H&R REIT, and Crescent Point Energy Corp.
There are no S&P/TSX Composite stocks showing strong price momentum by hitting new 52-week highs this week.
There are 32 stocks showing strong downward price trends by hitting new 52-week lows and they are ranked by market capitalization below. Toronto Dominion Bank is the largest company making new lows, followed by Nutrien Ltd., Brookfield Property Partners LP, Imperial Oil Ltd. and Shaw Communications Inc.
Scott Barlow