The S&P/TSX Composite fell almost 1 per cent (0.94 per cent) for the trading week ending with Thursday’s close, and the benchmark is now higher by 15.7 per cent for 2019.
In terms of Relative Strength Index (RSI), the index is firmly in technical neutral territory with a reading of 49 that is about half way between the oversold buy signal of 30 and the overbought RSI sell signal of 70.
There are 23 oversold, technically attractive index members by RSI this week.
Beleaguered SNC Lavalin Group Inc. is the most oversold benchmark stock, followed by CES Energy Solutions Corp., Mullen Group Ltd., Peyto Exploration Solutions Corp., Cameco Corp., and Arc Resources Ltd.
The most technically vulnerable index company according to RSI this week is Shopify Inc., which jumped 16.4 per cent for the period. Thomson Reuters Corp., Spin Masters Corp., Maple Leaf Foods Inc. and IGM Financial Inc. follow behind.
To provide investors with more ideas for fundamental research, we are including two more tables of stocks this week – TSX companies hitting new 52-week highs and those hitting 52-week lows.
In the former case, stocks hitting new highs show the highest price momentum and are likely to head higher (although investors should be aware that risk of a price correction increases the longer this momentum continues).
Investors should be patient and wait for price stabilization for stocks hitting 52-week lows.
Scott Barlow