Skip to main content

Inside the Market This week’s most oversold and overbought stocks on the TSX

The S&P/TSX Composite Index eased higher by 0.6 per cent for the trading week ending with Thursday’s close and stands a mediocre 1.9 per cent higher year to date. In technical terms, the benchmark remains in neutral territory according to Relative Strength Index (RSI), with a reading of 53 that is roughly mid-way between the RSI buy signal of 30 and the overbought sell signal of 70.

There are nine index members trading at oversold, technically-attractive levels by RSI this week, led by CI Financial Corp. Martinrea International Inc., Linamar Corp., Russell Metals Inc., Corus Entertainment Inc., and Manulife Financial Corp.

I chose Corus Entertainment Inc. (CJR-B-T) for the focus chart this week largely because most of the other stocks on the oversold list had been featured in recent months in this column. Unfortunately, there’s not much to see. After some early success in late 2016, RSI buy signals have had little impact on price performance.

Story continues below advertisement

A late October buy signal was by far the most successful in uncovering a profitable entry point in the past two years. The stock rallied 24 per cent to Jan. 17, 2017. After that, RSI buy signals in September 2017, January 2018 and March 2018 were merely followed by further sell-offs.

An April 2018 buy signal offered some marginal degree of hope – the stock rallied 26 per cent between April 3 and April 6 – but quickly fell back.

There could be good fundamental reasons for Corus Entertainment stock to rally from here – fundamental research should be completed before any market transactions – but the price will have to show more stability before technical signals can be depended upon.

There are 11 overbought, technical vulnerable index constituents by RSI this week. Firstservice Corp. is the most extended stock, followed by Quebecor Inc., Franco-Nevada Corp., Detour Gold Corp., Descartes Systems Group and Kirkland Lake Gold Ltd.

RSI chart for Corus Entertainment.

Livingston, Gillian

This week's most overbought and oversold stocks on the TSX

Most oversold stocks
TickerCompanyRSIPrice ($)200DMAReturn 1W (%)Return YTD (%)PE Ratio TTMPE Ratio Fwd
CIX-TCI FINANCIAL CORP.18.6923.0527.61-2.29-20.5010.989.55
MRE-TMARTINREA INTERNATIONAL INC.19.4413.3414.83-5.52-16.406.335.82
LNR-TLINAMAR CORP.22.2154.7970.86-2.20-24.906.525.66
RUS-TRUSSEL METALS INC.25.0926.6229.01-1.30-6.3912.2410.28
CJR-B-TCORUS ENTERTAINMENT INC.27.534.818.963.89-55.484.13N/A
MFC-TMANULIFE FINANCIAL CORP.29.1723.5125.30-0.51-8.7310.318.84
PWF-TPOWER FINANCIAL CORP.29.7130.7233.760.92-8.5612.069.08
AC-TAIR CANADA29.8721.0024.881.01-18.865.797.04
MG-TMAGNA INTERNATIONAL INC.29.9076.5973.29-1.818.749.328.12
Most overbought stocks
TickerCompanyRSIPrice ($)200DMAReturn 1W (%)Return YTD (%)PE Ratio TTMPE Ratio Fwd
FSV-TFIRSTSERVICE CORP.81.10101.1889.011.6915.4948.2429.75
QBR-B-TQUEBECOR INC.80.4527.8724.384.3417.9918.4415.67
FNV-TFRANCO-NEVADA CORP.74.2798.1095.522.24-1.6963.2964.74
DGC-TDETOUR GOLD CORP.73.6712.5912.835.44-14.8220.8215.76
DSG-TDESCARTES SYSTEMS GROUP73.2543.1536.931.6520.7384.5828.98
KL-TKIRKLAND LAKE GOLD LTD.73.0128.8920.186.3350.2423.6120.20
MAXR-TMAXAR TECHNOLOGIES LTD.72.3070.0970.037.50-12.3831.6611.89
AEM-TAGNICO EAGLE MINES LTD.72.2862.6956.255.918.5948.8280.84
ALA-TALTAGAS LTD.71.4627.5126.984.240.2642.9219.01
CAR-UN-TCAN APARTMENT PROPERTIES REIT70.7543.4937.142.3318.5430.22 N/A
EMA-TEMERA INC.70.4842.7344.11-0.02-6.6237.3514.97

Source: Bloomberg

Scott Barlow, Globe Investor’s in-house market strategist, writes exclusively for our subscribers at Inside the Market.

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter