The S&P/TSX Composite rose another 0.6 per cent for the trading week ending with Friday’s close and is now 14.8 per cent for the year. The benchmark’s Relative Strength Index (RSI) of 64 leaves it in the upper reaches of neutral technical territory, much closer to the overbought RSI sell signal of 70 than the oversold buy signal at 30.
There are three technically attractive stocks with RSIs below the buy signal. In order these are Brookfield Infrastructure Partners, Thomson Reuters Corp and Algoma Steel Group Inc.
There are 28 index constituents with RSIs above 70, indicating temporary vulnerability to a pullback. The five most overbought stocks are National Bank of Canada, Maple Leaf Foods, Equinox Gold Corp., Colliers International Group and Granite REIT.
There are 16 index stocks showing strong price momentum by hitting new 52-week highs and they are sorted by market capitalization in the table below. The biggest companies making new highs are National bank, Barrick Mining Corp., Fortis Inc., Kinross Gold Corp and Empire Co. Ltd.