The S&P/TSX Composite Index rose 1.3 per cent for the trading week ending with Thursday’s close, and the benchmark is now bumping up against the Relative Strength Index (RSI) overbought sell signal. The index’s RSI is now over 68, very close to the sell signal of 70.
For the second week in a row, there are no oversold, technically attractive stocks trading below the RSI buy signal of 30. The two companies closest to oversold territory are Cronos Group Inc. and Canntrust Holdings Inc., both with RSI readings of 32.
The stronger markets have pushed 22 benchmark stocks to overbought, technically vulnerable RSI readings.
Dream Global REIT – the subject of a buyout by Blackstone Group – is the most overbought company in the benchmark. A raft of financial stocks follow closely behind – Great-West Lifeco Inc., IA Financial Corp., Power Financial Corp., and Canadian Imperial Bank of Commerce.
Other notable names on the overbought list include Sun Life Financial Inc., Crescent Point Energy Corp., Royal Bank and Bank of Nova Scotia.
The S&P/TSX Composite stocks showing strong price momentum by establishing new 52-week highs are sorted by market capitalization below.
Brookfield Asset Management LLP is the largest company making new highs (as it has been for a number of weeks) followed by Sun-Life Financial Inc., Intact Financial Corp., Choice Properties REIT and Algonquin Power and Utilities.
No benchmark stocks are making new 52-week lows this week.
Scott Barlow