The S&P/TSX Composite dropped 0.76 per cent for the trading week ending with Friday’s close and it now stands 23.4 per cent higher for the year. In terms of technical analysis, the benchmark is in the higher end of the neutral range with a Relative Strength Index (RSI) of 58 that is closer to the overbought sell signal of 70 than the attractive, oversold buy signal of 30.
There are seven TSX stocks trading at oversold levels below the RSI buy signal of 30. Saputo Inc. is the most oversold company in the index with Inter Pipeline Ltd., Restaurant Brands International, Great-West Lifeco Inc., Algonquin Power & Utilities, Cascades Inc. and Hexo Corp following behind.
We have 13 companies trading with technically vulnerable RSIs above the 70 sell signal. The five most overbought stocks are Granite REIT, Pretium Resources Inc., IGM Financial Inc., Suncor Energy Inc. and Tricon Residential Inc.
There are only five S&P/TSX Composite members showing strong price momentum by hitting new 52-week highs, a big drop from last week’s 35. In order of market capitalization, the five are Suncor Energy Inc., Waste Connections Inc., Granite REIT, Tricon Residential Inc. and Lithium Americas Corp.
There are also five stocks making new 52-week lows – Saputo Inc., Canopy Growth Corp., Yamana Gold Inc., Cronos Group Inc. and Real Matters Inc.
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