The S&P/TSX Composite dropped 1.2 per cent for the trading week ending with Friday’s close, after being in official overbought territory the week prior.
The benchmark is now in the technically neutral range, according to Relative Strength Index (RSI), with a reading of 55 that is only slightly closer to the RSI sell signal of 70 than the oversold, technically attractive buy signal of 30.
We have one oversold stock this week and it’s a big one – Canadian National Railway Co.
CN Rail fell 8.6 per cent for the week as the firm’s participation in the competitive bidding war for U.S. competitor Kansas City Southern heated up. PrairieSky Royalty Ltd. is close to oversold with an RSI of 31.
There are 17 overbought benchmark stocks by RSI this week, led by Canadian Tire Corp.. Great-West Lifeco Inc. is next on the list followed by Franco-Nevada Corp. and two REITs – Summit Industrial Income REIT and Crombie REIT.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.