Oversold The S&P/TSX Composite dropped 0.8 per cent for the trading week ending with Friday’s close, leaving it 18.7 per cent higher for the year. The benchmark’s Relative Strength Index (RSI) of 51 puts it decidedly in the technically neutral range, almost exactly half way between the oversold buy signal of 30 and the overbought RSI sell signal of 70.
The market pullback left 16 index constituents trading with attractive RSIs below the 30 buy signal. Hexo Corp., ARC Resources Ltd., Labrador Iron Ore Royalty Co., AG Growth International Inc. and Sandstorm Gold Ltd. are the five most oversold companies in the benchmark. Lundin Mining Corp., Enerplus Corp., and Hudbay Minerals are also oversold.