The most oversold and overbought stocks on the TSX

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A look at equities with momentum in both directions

The S&P/TSX Composite jumped 2.1 per cent for the trading week ending with Friday’s close and now stands 21.2 per cent higher for the year. The benchmark’s Relative Strength Index of 63 leaves it far closer to the overbought sell signal of 70 than the technically attractive RSI buy signal of 30.

There are seven companies with RSIs below the oversold buy signal this week. Premium Brand Holdings Corp. is the most oversold stock in the index followed by BCE Inc., Stella-Jones Inc., Interrent REIT, Boardwalk REIT, Canadian Apartment Properties REIT and Toromont Industries Ltd. There are 35 companies with overbought RSIs suggesting the potential for a temporary pullback. The five most overbought stocks are Celestica Inc., Secure Energy Services Inc., ECN Capital Corp., Onex Corp and CI Financial Corp.

There are 17 index members showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in the table below. The largest companies making new highs are Enbridge Inc., Bank of Nova Scotia, Waste Connections Inc., Great-West Lifeco and Dollarama Inc.

 

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