The S&P/TSX Composite climbed another 1.8 per cent for the trading week ending with Thursday’s close, and, remarkably, the benchmark is lower by only 2.6 per cent for the year.
The index is approaching overbought, technically vulnerable territory, according to Relative Strength Index (RSI). The current reading of 66 is very close to the RSI sell signal of 70.
There are no benchmark members trading in the official oversold range below the RSI buy signal of 30, but two are right on the border. Frontera Energy Corp. and Brookfield Business Partners LP are both just below 31.
There are 26 S&P/TSX Composite stocks with RSIs above the 70 sell signal that indicates a higher likelihood of a short-term correction. TFI International Inc. is again the most overbought company in the index, followed by West Fraser Timber Co. Ltd., Norbord Inc., Granite REIT and Mullen Group Ltd. Other notable names on the overbought list include Celestica Inc., Hydro One Ltd. and Home Capital Group Inc.
There are 12 index constituents showing strong price momentum by hitting new 52-weeks highs and they are ranked by market capitalization in the table below. The seemingly unstoppable Shopify Inc. is again making new highs along with Alimentation Couche-Tard Inc. and Kirkland Lake Gold Ltd.
The are no benchmark stocks hitting new 52-week lows.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.