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The week's most oversold and overbought stocks on the TSX

The S&P/TSX Composite dropped 0.8 per cent for the trading week ending with Thursday's close, and there are now too many technically oversold index members by Relative Strength Index (RSI) to list in the table below. The index as a whole is not oversold – its current RSI reading of 41 is above the RSI buy signal of 30, but well away from the overbought sell signal of 70.

There are 36 benchmark constituents – 14 per cent of the index - in officially oversold, technically attractive territory trading below the RSI buy signal of 30. The list is led by Cineplex Inc., followed by Intertape Polymer Group Inc., Celestica Inc., Knight Therapeutics Inc., Keyera Corp., H&R REIT, and Kinaxis Inc. The table below includes the more widely held of this week's oversold stocks.

I picked Blackberry Inc. as the focus stock this week, in part because of its historic popularity and also because it's been a top performing stock in 2017 with a year-to-date gain of 20.2 per cent. Blackberry is now trading right at its 200-day moving average with an RSI reading of 26.

RSI buy signals have had a mixed-to-mediocre record in uncovering buying opportunities for Blackberry stock. An oversold signal in October of 2015 predicted a whopping 61 per cent rally to December 2015, but further RSI buy signals in April and May 2016, and December 2016 were far less successful.

The 200-day moving average looks like the more important technical indicator for Blackberry at this point. The stock hugged the 200-day moving average trend line between July 2016 and March 2017 before breaking sharply higher. The price has now returned to the 200-day, and it's important for the price to stay above the trend line for those looking to buy. As always, fundamental research should accompany technical analysis before any transactions are made in the market.

The list of overbought, technically vulnerable benchmark stocks is short this week at four members. Great Canadian Gaming Corp. heads the table, followed by Finning International Inc., Altus Group Ltd., and Descartes Systems Group.

RSIPrice200DMAReturn 1W %Return YTD %PE Ratio TTMPE Ratio Fwd
CGX-TCINEPLEX INC11.1824942.2651.1983-4.497179-15.9464735.9577851928.06108898
ITP-TINTERTAPE POLYMER GROUP INC14.8937121.9523.76905-7.383963-11.4285318.087705814.62169847
CLS-TCELESTICA INC14.9057614.3917.50285-3.68139-9.55373710.301105988.690256967
GUD-TKNIGHT THERAPEUTICS INC17.006178.5410.11368-8.172044-20.4841763.36110609#N/A N/A
KEY-TKEYERA CORP17.1050337.0539.5445-3.010473-6.21135325.3492963722.37318841
HR.UN-TH&R REAL ESTATE INV-REIT UTS17.739520.2122.4171-4.263387-6.37480311.51873409#N/A N/A
KXS-TKINAXIS INC18.1000764.7373.48835-18.93553.568005104.193751549.42199666
EXE-TEXTENDICARE INC18.21229.0510.07085-3.208554-5.87238920.80899912#N/A N/A
WN-TWESTON (GEORGE) LTD22.82395108.12114.3285-0.943653-4.08183120.1694974115.22173729
RNW-TTRANSALTA RENEWABLES INC23.6421813.9614.9499-2.3093070.675290632.2181604212.9981378
CUF.UN-TCOMINAR REAL ESTATE INV-TR U25.4973612.1214.021-6.912443-12.427617.835384445#N/A N/A
PPL-TPEMBINA PIPELINE CORP26.0403840.5742.17515-4.809949-0.660093831.0898376719.96555118
PSI-TPASON SYSTEMS INC26.1950917.0518.615-4.642063-11.58683174.192881539.01601831
BB-TBLACKBERRY LTD26.5134811.1111.11345-6.24472920.23809#N/A N/A292.1070682
ELD-TELDORADO GOLD CORP26.62822.474.10966.465518-42.5345886.6473943818.5533636
ARE-TAECON GROUP INC26.9857914.4215.7802-2.369668-3.97653620.9123408616.20224719
ACO.X-TATCO LTD -CLASS I28.1797746.2347.7249-1.0276184.9017315.1175162214.47854682
TIH-TTOROMONT INDUSTRIES LTD28.6110844.9344.9025-1.2961336.96723924.9689765120.30275644
VSN-TVERESEN INC28.6663417.6115.193-3.50684639.3648558.9201670632.25274725
CU-TCANADIAN UTILITIES LTD-A29.3539938.9838.446-1.24988910.7534917.3036644616.54499151
GIB.A-TCGI GROUP INC - CLASS A29.4310562.764.579-3.270594-2.70018917.3994076316.23511134
SW-TSIERRA WIRELESS INC29.5899728.9630.82775-1.42954737.7735468.0271555124.09569636
RSIPrice200DMAReturn 1W %Return YTD %PE Ratio TTMPE Ratio Fwd
GC-TGREAT CANADIAN GAMING CORP95.1816331.1524.2374522.4931224.6997621.28979936#N/A N/A
FTT-TFINNING INTERNATIONAL INC73.9474328.0125.715359.585298.0927725.6710116719.13251366
AIF-TALTUS GROUP LTD70.7915531.729.717452.060533.46689329.9787980523.0713246
DSG-TDESCARTES SYSTEMS GRP/THE70.1725233.630.271752.15870617.3594174.2361315224.93189416

Source: Bloomberg/Scott Barlow

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