The S&P/TSX Composite dropped 0.6 per cent for the week ending with Friday’s close. Technically speaking, the index’s Relative Strength Index (RSI) of 50 leaves it exactly in the middle between the oversold buy signal of 30 and the overbought RSI sell signal of 70.
There are nine oversold, technically attractive benchmark members trading below the 30 buy signal this week. The most oversold company is Shopify Inc., which, until recently, was the biggest stock in the index by market capitalization. Seabridge Gold Inc., Ritchie Brothers Auctioneers, Lightspeed Commerce Inc. and Enghouse Systems Ltd. round out the top five most oversold stocks.
There are 12 stocks trading with technically vulnerable RSIs above the sell signal. ECN Capital Corp is the most overbought company in the index and it’s followed by Royal Bank of Canada, Vermilion Energy Inc., Crescent Point Energy and Canadian Imperial Bank of Commerce
There are 16 S&P/TSX Composite members showing strong price momentum by hitting new 52 week highs and they are ranked by market capitalization below. The five largest companies making new highs are Royal Bank, Bank of Nova Scotia, Bank of Montreal, CIBC and Canadian Natural Resources.
The largest stocks making new 52 week lows are Lightspeed Commerce, TransAlta Renewables Inc., Ballard Power Systems Inc., Innergex Renewable Energy and Cargojet Inc.
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Scott Barlow