The S&P/TSX Composite rose 0.4 per cent for the trading week ending with Friday’s close and stands 8.5 per cent higher for 2025 so far. The benchmark’s Relative Strength Index (RSI) of 67 leaves it precariously close to the overbought sell signal at 70 which indicates a higher probability of a temporary pullback.
There are two attractive index constituents by RSI this week, with oversold readings below the 30 buy signal – Enghouse Systems Ltd. and North West Co Inc. Descartes Systems Group is close to oversold with an RSI of 30.5.
The list of overbought companies by RSI is much larger at 33 members. The most overbought stocks are Paramount Resources Ltd., Spartan Delta Corp., Dollarama Inc., Gibson Energy Inc. and Oceangold Corp.
There are 21 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 Fairfax Financial Holdings Ltd., Imperial Oil Ltd., Barrick Mining Corp., Nutrien Ltd. and Arc Resources Ltd.
There are two stocks making new 52-week lows last week – Ivanhoe Mines Ltd and Enghouse Systems Ltd.