The S&P/TSX Composite leapt 2.5 per cent for the trading week ending with Friday’s close and it’s now up an impressive 25.8 per cent for 2025. The benchmark’s Relative Strength Index (RSI) of 83 leaves it deeply embedded in overbought territory, well above the 70 sell signal, and vulnerable to a temporary pullback.
There are six benchmark constituents with attractive, oversold RSIs below the buy signal of 30. (I was surprised there were any oversold companies given the benchmark’s strength). Interfor Corp. is the most oversold TSX stock followed by goeasy Ltd., Algoma Steel Group Inc., Spin Master Corp., Thomson Reuters Corp and Dye & Durham Ltd.
Precious metals and copper miners dominate the list of 39 overbought index constituents this week. Centerra Gold Inc. is the most overbought stock followed by Lundin Mining Corp., IAMGOLD Corp, Secure Waste Infrastructure Corp., Sprott Inc. and First Quantum Minerals Ltd.
There are 35 S&P/TSX Composite stocks showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in one of the tables below. The largest companies making new highs are Shopify Inc., Toronto-Dominion Bank, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and TC Energy Corp.
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