The S&P/TSX Composite eased lower by 0.2 per cent for the trading week ending with Friday’s close and is now 29.7 per cent higher for the year. The benchmark’s Relative Strength Index (RSI) of 61 places it in the upper reaches of neutral technical territory, closer to the overbought sell signal at 70 than the attractive, RSI buy signal of 30.
There are seven index constituents trading with RSIs below 30, suggesting a higher probability of a bounce higher. The top five are Allied Properties REIT, Northland Power Inc., Dye & Durham Ltd., Tilray Brands Inc. and Stantec Inc.
There are 17 companies with RSIs above 70, implying the chance for a temporary pullback. BRP Inc. is the most overbought stock, followed by Laurentian Bank of Canada, Royal Bank of Canada, Topaz Energy Corp. and Headwater Exploration Inc.
There are also 17 stocks showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in a table below. The largest companies making new highs are Royal Bank, Toronto-Dominion Bank, Bank of Nova Scotia, Restaurant Brands International Inc. and First Quantum Minerals Ltd.
Thomson Reuters Corp. and Canadian Apartment Properties REIT are making new 52-week lows.
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