The S&P/TSX Composite ascended another 0.9 per cent for the trading week ending with Friday’s close and stands 13.2 per cent higher year-to-date.
According to Relative Strength Index (RSI) the benchmark is hovering in the upper reaches of technically neutral territory with a 61 level that is much closer to the overbought sell signal of 70 than the attractive, oversold RSI buy signal of 30.
There are three oversold benchmark companies by RSI this week. Canadian National Railway Co. is the most oversold stock in the index followed by Stella-Jones Inc. and Parex Resources Inc. Cogeco Communications Inc. is close to oversold with an RSI of 31 that is just above the 30 buy signal.
There are 19 overbought, technically vulnerable names trading above the 70 sell signal. Financials dominate the top of the list with Canadian Imperial Bank of Commerce the most overextended stock and Power Corp of Canada , Great-West LifeCo Inc., Canadian Western Bank, National Bank of Canada, Royal Bank and CI Financial Corp all in the top ten.
Other prominent names in the overbought table include Russell Metals Inc., Loblaw Companies Ltd., Chartwell REIT and TFI International Inc.
There are 12 companies showing strong price momentum by making new 52-week highs and they are ranked by market capitalization below. Banks again feature heavily – the largest five stocks are Royal Bank, Bank of Montreal, non-financial Canadian Pacific Railway Ltd., then CIBC and Great-West LifeCo.
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