The S&P/TSX Composite index was higher by 0.7 per cent higher for the trading week ending with Friday’s close and sits exactly 9.0 per cent lower for the year. The benchmark’s Relative Strength Index (RSI) of 36 leaves it in neutral territory but much closer to the oversold buy signal of 30 than the overbought RSI sell signal of 70.
There are 16 index constituents trading with attractive RSIs below the 30 buy signal. Toronto-Dominion Bank and Bank of Nova Scotia are the two most oversold stocks – the first time I can remember that two major banks heading that list - followed by Lundin Mining Corp., Canadian Western Bank and Canadian Natural Resources Ltd..
There are only two stocks trading at technically vulnerable RSI levels above the overbought sell signal of 70 – Saputo Inc. and Thomson Reuters Corp. Shaw Communications is close to overbought with an RSI of 68.
Only one benchmark company, Intertape Polymer Group Inc., is showing strong price momentum by hitting new 52-week highs. Bank of Nova Scotia and Stella-Jones Inc. are making new lows.
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Scott Barlow