The S&P/TSX Composite fell 1.4 per cent for the trading week ending with Thursday’s close and now stands 1.5 per cent higher for 2021.
The benchmark’s current Relative Strength Index (RSI) level of 48 leaves it in the technically neutral range between the oversold RSI buy signal of 30 and the overbought sell signal at 70.
There is only one index member, Methanex Corp., trading at technically attractive RSI levels below the 30 buy signal – I expected more after the market volatility this week. Methanex entered officially oversold territory after dropping 5.4 per cent over the past seven days. Maple Leaf Foods is the next most oversold benchmark stock but with an RSI of 32, it is not yet below the buy signal.
There are 11 overbought, technically vulnerable S&P/TSX Composite companies according to RSI this week. Transalta Corp. is the most overbought stock in the index, followed by Canopy Growth Corp., Boyd Group Services Inc., First Majestic Silver Corp. and TFI International Inc.
There are four index stocks showing strong price momentum by hitting new 52-week highs and they are sorted by market capitalization in the table below. Canopy Growth is the largest company making new highs after climbing 21.8 per cent during the past week. First Majestic Silver Corp. is next after jumping 26 per cent and Premium Brands Holdings Corp. and Tricon Residential Inc. follow behind after less dramatic gains.
Once again, there are no benchmark stocks hitting new 52-week lows.
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.