The S&P/TSX Composite rose 0.9 per cent for the trading week ending with Friday’s close and is now 25.8 per cent higher for 2024. The index’s Relative Strength Index (RSI) of 77 leaves it well into overbought territory, above the sell signal of 70.
There is only one oversold, attractive benchmark constituent by RSI this week – BCE Inc remains below the buy signa of 30.
There are 22 index stocks with RSIs above 70 that imply a higher risk of temporary correction. The five most overbought companies are CI Financial Corp., Bank of Nova Scotia, Laurentian Bank of Canada, Methanex Corp. and CAE Inc.
There are 17 stocks showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in the table below. The biggest companies making new highs are Royal Bank of Canada, Shopify Inc., Constellation Software Inc., Bank of Nova Scotia and Fairfax Financial Holdings Ltd.
There are no benchmark stocks making new 52-week lows.
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