The S&P/TSX Composite jumped 2.9 per cent (total return) for the trading week ending with Friday’s close and is now only 3.2 per cent lower for 2022. The benchmark, however, is now bumping up against overbought, technically vulnerable levels according to Relative Strength Index (RSI). At 68, the index RSI is only marginally below the 70 sell signal that would indicate it’s overbought.
There is only one benchmark stock – TransAlta Corp. - trading at attractive oversold levels with an RSI below the 30 buy signal. Centerra Gold Inc. is right at the buy signal and CAE is close to oversold territory with an RSI of 31.
There are 26 companies trading in the overbought range above the RSI sell signal of 70. The five most extended stocks are Element Fleet Management Corp., Northland Power Inc., Martinrea International Inc. ATS Automation Tooling Systems and Brookfield Asset Management.
Six benchmark constituents are showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization below. Alimentation Couche-Tard is the largest stock making new highs, followed by Dollarama Inc., Northland Power Inc., Element Fleet Management, Exchange Income Corp and Mullen Group.
The only company hitting new 52-week lows is cemetery operator Park Lawn Corp.
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Scott Barlow