Scott Barlow, Globe Investor’s in-house market strategist, writes exclusively for our subscribers at Inside the Market.
The S&P/TSX Composite eased higher by 0.74 per cent for the trading week ending with Thursday’s close and sits 22.7 per cent higher for the year heading in to the decade’s last week of trading. In technical terms, the index is in the higher end of the neutral range according to Relative Strength Index (RSI). The benchmark’s current RSI level of 61 is much closer to the overbought sell signal of 70 than the oversold RSI buy signal of 30.
There are five technically attractive benchmark member stocks trading below the buy signal. Canfor Corp is the most oversold company after getting shellacked by more than 18 per cent during the week. Brookfield Infrastructure Partners is also oversold as are Loblaw Companies Ltd., Empire Co. Ltd. and BCE Inc.
The overbought, technically vulnerable list is sizeable this week at 27 members. Dream Global REIT is the most extended stock this week, followed by Westjet Airlines Ltd., takeout target Cineplex Inc., MEG Energy Corp. and Stantec Inc.
Other prominent names on the overbought list include Canadian Natural Resources, Power Financial Corp. and ONEX Corp.
Stocks hitting new 52-week highs, showing the strongest price momentum, are ranked by market capitalization below. WSP Global Inc. is the largest stock hitting new highs and IA Financial Corp. Inc., Stantec Inc. and Alaris Royalty Corp also make the list.
Scott Barlow