The S&P/TSX Composite fell 0.6 per cent for the trading week ending with Friday’s close after the index spent a number of weeks in overbought territory.
Currently, the index’s Relative Strength Index (RSI) of 58 puts it in the higher end of the technically neutral range between the oversold buy signal of 30 and the overbought RSI sell signal of 70.
There are 12 oversold, technically attractive benchmark constituents this week. Jamieson Wellness and Stella-Jones Inc. are the two most oversold companies and they are followed by two miners in Kinross Gold Corp. and Lundin Mining Corp. Two major insurers, Sun Life Financial Inc. and Manulife Financial Corp, are also on the oversold list.
The overbought list of 17 S&P/TSX Composite members trading above the RSI sell signal of 70 is dominated by REITs. Summit Industrial Income REIT is the most overbought company in the index and it’s joined by InterRent REIT, Dream Industrial REIT, Killam Apartment REIT, Dream Office REIT and Granite REIT.
There are 13 benchmark companies showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization below. Altagas Ltd is the largest company making new highs with Granite REIT, Premium Brands Holdings Corp., Capital Power Corp and Dream industrial REIT following behind.
There are two stocks making new 52-week lows – Pan American Silver Corp. and Novagold Resources.
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