The S&P/TSX Composite Index rose 0.4 per cent for the trading week ending with Friday’s close and is now 21.6 per cent higher for 2026. The index’s Relative Strength Index (RSI) of 55 leaves it in the technical neutral range, slightly closer to the overbought sell signal of 70 and the attractive, oversold buy signal of 30.
There are seven stocks with attractive RSIs below 30 this week. A sub-30 reading usually indicates a better chance for a rebound but Dye and Durham Ltd. has been languishing in oversold territory for a number of weeks. Telus Corp., Methanex Corp., Pason Systems Inc., Vermilion Energy Inc., TMX Group Ltd. and Westshore Terminals Investment Corp. are also on the list and might have more luck than Dye and Durham.
The top of the overbought list is dominated by major banks with Bank of Montreal the most overbought stock in the index and Royal Bank of CanadA and Toronto-Dominion Bank in the top six. Jamieson Wellness inc., Alimentation Couche-Tard Inc. Primaris REIT and Blackberry Ltd. are also overbought.
There are 19 benchmark stocks showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in a table below. The biggest stocks making new highs are Bank of Montreal, Canadian National Railway Co., Fortis Inc., Emera Inc. and IA Financial Corp Inc.
There is only one stock, Telus Corp., make new 52-week lows.