TSX Stocks: Oversold, Overbought, and New 52-Week Highs

The TSX Composite jumped 2.7% for the week and is up 14.1% for 2025. The RSI of 63 is near the overbought signal of 70. 13 stocks have attractive RSIs below 30, including Canadian Tire and Algoma Steel. 27 stocks are overbought, including Saputo and Maple Leaf Foods. 21 stocks made new 52-week highs, while Pembina Pipeline and Labrador Iron Ore Royalty made new 52-week lows.

The TSX Composite Index jumped 2.7% for the week ending July 2, 2025, and is up 14.1% for the year to date. The Relative Strength Index (RSI) of 63 is near the overbought signal of 70, indicating a strong bullish trend. However, 13 stocks have attractive RSIs below 30, signaling potential buying opportunities. Meanwhile, 27 stocks are considered overbought, with notable examples including Saputo Inc. and Maple Leaf Foods Inc. [3]

The index's performance is driven by a mix of geopolitical factors and solid corporate earnings. Investor focus is shifting towards the upcoming U.S.-Russia talks on August 15, which aim to negotiate a possible end to the war in Ukraine. Additionally, a looming U.S. tariff deadline on China, set to expire on Tuesday, is expected to be extended to avoid triple-digit percentage levies. Tuesday's July U.S. consumer price index data will provide insights into whether Trump's import tariffs are fueling price pressures and could influence the Federal Reserve's September interest rate decision [1].

Canada's economic calendar is relatively light this week, with only the June wholesale trade and manufacturing sales figures scheduled for release on Friday. The Bank of Canada will release the Governing Council deliberations summary on Wednesday, which could provide insights into future monetary policy decisions [1].

Several individual stocks have shown strong price momentum, with 21 TSX companies making new 52-week highs. Notable examples include Agnico Eagle Mines Ltd., Wheaton Precious Metals Corp., and National Bank of Canada. In contrast, Pembina Pipeline Corp. and Labrador Iron Ore Royalty Co. have made new 52-week lows, indicating potential selling pressure [3].

Investors should remain cautious as the TSX Composite approaches the overbought RSI level of 70. While the index's strong performance is driven by geopolitical developments and robust corporate earnings, the potential for a market correction cannot be ruled out. As always, investors should conduct thorough research and consider their risk tolerance before making investment decisions.

References:
[1] https://www.reuters.com/world/americas/tsx-futures-rise-amid-us-russia-meet-trade-talks-key-data-focus-2025-08-11/
[2] https://www.ainvest.com/news/liberty-media-q2-2025-revenue-41-strong-formula-1-performance-strategic-moves-2508/
[3] https://www.theglobeandmail.com/investing/markets/inside-the-market/article-the-most-oversold-and-overbought-stocks-on-the-tsx-142/