S&P/TSX Composite Rebounds, Showing Signs of Both Oversold and Overbought Stocks

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S&P/TSX Composite Rebounds, Showing Signs of Both Oversold and Overbought Stocks
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The S&P/TSX Composite Index experienced a 1.2% gain during the week, bringing its year-to-date performance to 1.5% positive. While the RSI indicator suggests a neutral market position, there are notable instances of both oversold and overbought stocks. Saputo Inc. leads the oversold category, followed by Canopy Growth Corp., Rogers Communications Inc., Boardwalk REIT, and North West Co. Inc. Conversely, Toronto-Dominion Bank, Celestica Inc., Nutrien Ltd., Aritzia Inc., and Enbridge Inc. are flagged as technically extended and overbought. The article also highlights seven companies reaching new 52-week highs, ranked by market capitalization.

The S&P/TSX Composite recovered 1.2 per cent during the week ending with Friday’s close and is now 1.5 per cent higher for the year. The benchmark’s of 54 leaves it in technically neutral territory, close to the midpoint between the oversold buy signal of 30 and the overbought, RSI sell signal of 70.

There are nine oversold, technically attractive benchmark stocks this week led by Saputo Inc. with an RSI of 20. The next four most oversold companies are Canopy Growth Corp., Rogers Communications Inc., Boardwalk REIT and North West Co. Inc. There are five technically extended, overbought index stocks this week – Toronto-Dominion Bank, Celestica Inc., Nutrien Ltd., Aritzia Inc. and Enbridge Inc.

There are seven S&P/TSX Composite constituents showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in the table below. The companies are Enbridge inc., Celestica, Gildan Activewear Inc., Transalta Corp., Gibson Energy Inc., NGex Minerals Ltd. and Enerflex Ltd.

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