The S&P/TSX Composite rose a marginal 0.2 per cent for the trading week ending with Friday’s close and is now 12.7 per cent higher for 2026. The benchmark’s Relative Strength Index (RSI) of 58 has it in technically neutral territory, between the oversold, attractive sell signal of 30 and the overbought RSI sell signal of 70.
There are five index constituents with RSIs below 30, representing oversold conditions. The most oversold stock, however, is Dye & Durham Ltd. that has been mired in oversold conditions for many weeks without a recover. The remaining four oversold companies are Richelieu Hardware Ltd., Telus Corp., MTY Food Group Inc. and Ballard Power Systems Inc.
There are 10 TSX stocks with overbought conditions implying a higher risk of a temporary pullback. IA Financial Corp is the most oversold stock, followed by Interrent REIT, Definity Financial Corp., Spin Master Corp. and Primaris REIT.
There are 11 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 Royal Bank of Canada, Bank of Montreal, CIBC, Bank of Nova Scotia and Canadian National Railway Co.