The S&P/TSX Composite fell 3.7 per cent for the trading week ending with Friday’s close and it’s now lower by 0.8 per cent for the year. The benchmark’s Relative Strength Index (RSI) of 30 puts it exactly at the oversold sell signal signaling a higher probability of a short-term bounce. The overbought sell signal at 70 is a distant memory for the index.
The list of technically attractive, oversold TSX stocks trading below the 30 buy signal is extensive at 44 members. The five most oversold companies are Pet Valu Holdings Ltd., Goeasy Ltd., Gildan Activewear, K92 Mining and Capstone Copper Corp.
There are 16 benchmark stocks with RSIs above the 70 sell signal indicating a higher potential for a temporary pullback. The five most overbought stocks are Parex Resources, Suncor Energy Inc., Vermilion Energy Inc., Precision Drilling Corp. and ARC Resources Ltd.
There are 12 stocks showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in a table below. The biggest companies making new highs are Suncor Energy, Cenovus Energy Inc., Pembina Pipeline Corp., Prairiesky Royalty Ltd. and Tamarack Valley Energy Inc.
There are six stocks making new 52-week lows – GFL Environmental Inc., Firstservice Corp., Colliers International Group., Canadian Apartment Properties REIT., Killam Apartment REIT and Pet Valu Holdings Ltd.