The S&P/TSX Composite fell 1.9 per cent for the trading week ending with Thursday’s close and sits 22.6 per cent lower year-to-date.
The benchmark’s Relative Strength Index (RSI) reading of 44 puts it in technically neutral territory although slightly closer to the oversold buy signal of 30 than the overbought, RSI sell signal of 70.
There are 19 index member stocks trading at attractive RSI levels below the 30 buy signal. H&R REIT is the most oversold company in the benchmark, followed by AG Growth International Inc., MTY Food Group Inc., Aritzia Inc., Cineplex Inc., and Air Canada. Home Capital Group Inc., Brookfield Property Partners LP and Riocan REIT are also on the list.
There are no technically vulnerable, overbought stocks with RSIs above 70 again this week. Maple Leaf Foods Inc. and Jamieson Wellness Inc. are closest.
Interestingly, there are no S&P/TSX Composite Composite companies making either 52-week lows or 52-week highs. This could be indicative of a reflex rally in the most oversold stocks – the energy sector has bounced a bit – while investors remain reluctant to add to new positions.
Scott Barlow