The S&P/TSX Composite fell 2.1 per cent for the trading week ending with Thursday’s close and sits 13.9 per cent lower for 2020.
The benchmark’s Relative Strength Index (RSI) reading of 50 puts it exactly in technically neutral territory, half way between the oversold buy signal of 30 and the overbought RSI sell signal of 70.
There are no technically attractive index member stocks by RSI this week and very few overbought companies. This is indicative of market churn, where no sector beyond precious metals has any momentum either higher or lower.
There are two stocks, however, right at the precipice of buy signals. MTY Food Group Inc. and Aurora Cannabis Inc. each sport RSIs of 32, and Colliers International Group and Chemtrade Logistics Income Fund are at 33.
There are eight benchmark stocks trading at technically vulnerable levels with RSI readings above the sell signal of 70.
Precious metals miners dominate the list, which includes Wheaton Precious Metals Corp., Agnico Eagle Mines Ltd., Yamana Gold Inc., Semafo Inc. and Franco Nevada Corp.
Shopify Inc. is also overbought, according to RSI.
There are eight S&P/TSX Composite stocks showing strong price momentum by hitting new 52-week highs. It’s no surprise that all of them are also on the overbought list. Stocks hitting new highs are ranked by market cap in the table below.
There are no benchmark companies hitting new 52-week lows this week.
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Scott Barlow