The S&P/TSX Composite is no longer overbought after falling 0.7 per cent for the trading week ending with Thursday’s close.
The benchmark’s current Relative Strength Index (RSI) of 62 leaves it far closer to the overbought sell signal of 70 than the oversold RSI buy signal of 30. The index is up 2.7 per cent so far in 2020.
There are three index member companies trading in the technically attractive range with RSIs under 30. Spin Master Corp.is the most oversold stock in the benchmark, followed by Enerplus Corp. and Shawcor Ltd.
There are 38 index stocks trading in overbought territory with RSI readings above 70.
The ten most overbought companies are, in order, Thomson Reuters Corp., Capital Power Corp., Northland Power Corp., Franco-Nevada Corp., Enbridge Inc., Transalta Renewables Inc., Innergex Renewable Energy, Algonquin Power and Utilities, Altagas Ltd. and Brookfield Infrastructure Partners LP.
There are 19 S&P/TSX Composite stocks with price momentum strong enough to make new 52-week highs and they are sorted by market capitalization below.
Enbridge Inc. is the largest company hitting new highs. Shopify Inc. and Thomson Reuters Corp are next.
Canada Goose Holdings Inc. is the largest company making new 52-week lows this week, followed by Spin Master Corp., Enerplus Corp., Labrador Iron Ore Royalty Co., Enerflex Ltd., and Shawcor Ltd.