Top Overbought and Oversold Stocks on TSX Revealed
The S&P/TSX Composite Index experienced a notable increase of 1.7% during the past trading week, concluding Friday with a solid performance. As a result, the index has risen by 2.6% for the year 2026, including dividends.
Understanding the Current Market Dynamics
The Relative Strength Index (RSI) for the benchmark stands at 50. This positioning places the index midway between the oversold threshold of 30 and the overbought level of 70. The RSI is a crucial metric for investors assessing market momentum.
Oversold Stocks on the TSX
Within the index, there are currently 11 stocks marked as oversold, exhibiting RSIs below the 30 level. The five most oversold stocks include:
- Thomson Reuters Corp.
- Altus Group Ltd.
- Shopify Inc.
- Descartes Systems Group
- Lightspeed Commerce Inc.
Overbought Stocks on the TSX
Conversely, there are 12 stocks identified as overbought, indicating potential vulnerabilities. The most overbought companies on the index this week are:
- Precision Drilling Corp.
- Brookfield Infrastructure Partners
- Keyera Corp.
- Pembina Pipeline Corp.
- Westshore Terminals Investment Corp.
Stocks with Price Momentum
In addition to oversold and overbought stocks, 27 companies have achieved new 52-week highs. These stocks are presented below, organized by market capitalization:
| Company Name |
|---|
| Bank of Montreal |
| Bank of Nova Scotia |
| Canadian Imperial Bank of Commerce |
| Canadian Natural Resources Ltd. |
| Suncor Energy Inc. |
Stocks Making New Lows
In contrast, three stocks have reached new 52-week lows. These companies are:
- Thomson Reuters
- ARC Resources
- TMX Group Ltd.
In conclusion, the TSX market continues to exhibit varied momentum, with numerous stocks displaying both overbought and oversold conditions. Investors should closely monitor these dynamics to make informed decisions moving forward.
