The S&P/TSX Composite rose another 1.7 per cent for the shortened trading week ending with Friday’s close and stands 15.2 per cent higher for 2021.
The benchmark as a while is now officially overbought and vulnerable to a temporary pullback according to Relative Strength Index (RSI).The index’s RSI is right at the overbought sell signal of 70.
There are three TSX stocks trading with technically attractive RSIs below the 30 buy signal. Stella-Jones Inc. is the most oversold company in the benchmark, followed by Winpak Ltd and Transalta Corp.
There are 14 overbought index members trading at or above the RSI sell signal of 70. The top of the list is again dominated by financial stocks with Canadian Imperial Bank of Commerce, Power Corp of Canada, Bank of Montreal , Royal Bank and CI Financial Corp the most overbought companies. Other prominent names on the overbought list include Telus Corp., Brookfield Asset Management Inc. and Bank of Nova Scotia.
There are 19 stocks showing strong price momentum by hitting new 52-week highs and they are sorted by market capitalization in the table below. Bank of Nova Scotia is the largest company hitting new highs, with Brookfield Asset Management, Bank of Montreal, CIBC, Nutrien Ltd. and Power Corp of Canada right behind.
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Scott Barlow