The S&P/TSX Composite dipped 2.5 per cent for the trading week ending with Friday’s close and it now sits 4.4 per cent lower for 2022.
The benchmark itself is not yet oversold according to Relative Strength Index (RSI). The reading of 37 remains above the oversold buy signal of 30 and not anywhere near the overbought RSI sell signal 0f 70.
There are 29 oversold, technically attractive index constituents trading below the 30 buy signal. Precious metals stocks dominate the top section of the list. The most oversold stocks are, in order, Bausch Health Companies Inc., Hexo Corp., Eldorado Gold Corp., Kinross Gold Corp., Seabridge Gold Inc., Wheaton Precious Metals Corp, Osisko Gold Royalties Ltd., Lundin Mining Corp. and Barrick Gold Corp.
There are no index companies trading at oversold levels above the RSI sell signal of 70. Ritchie Brothers Auctioneers and Element Fleet Management are closest with RSIs of 69.
Only one stock, Alimentation Couche-Tard Inc., is showing strong price momentum by hitting new 52-week highs. The roughly 400 point rally in the S&P/TSX Composite Friday left no benchmark companies making new 52-week lows.
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Scott Barlow