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September 27, 2019

The Most Overbought and Oversold Stocks on the TSX – Sept 27th

By Mathieu Litalien

September 27, 2019

Technical indicators are a great way for investors to help time their investment decisions. One of the most common is the 14-day relative strength index (RSI). The 14-day RSI is a momentum indicator that compares bullish and bearish price momentum against a company’s stock price.

Typically, a stock is considered overbought when the indicator is above 70%. It is a sign that the stock may be due for a short-term pullback. On the flip side, an RSI below 30% is an indicator that the stock is in oversold territory and may be due for a short-term bounce.

Investors can use these markers as buy and sell signals to help time their purchases.

Over the past month, the TSX Index has enjoyed a stable and steady uptrend. Last week, the S&P/Composite Index hit oversold territory as it touched an RSI of 70. It was therefore not surprising to see the TSX slip by 0.9% this past week. It is now firmly in neutral territory with an RSI of 55.

In total, there are currently 41 companies in Overbought territory and only 18 in Oversold territory. Here are the top 10 in each:

MOST OVERBOUGHT

  • Great West Life (TSX:GW)): 85.49
  • Alimentation Couche-Tard (TSX:ATD.B): 84.52
  • Invesque Inc (TSX:IVQ): 81.21
  • Dream Global REIT (TSX:DRG.UN): 81.00
  • Plaza Retail REIT (TSX:PLZ.UN): 80.23
  • Brookfield Renewable Partners (TSX:BEP.UN): 80.15
  • Bank of Nova Scotia (TSX:BNS): 79.5
  • Dream Office REIT (TSX:D.UN): 77.59
  • Atco (TSX:ACO.X): 76.07
  • Major Drilling Grp. (TSX:MDI): 75.95

A strong month in which it’s share price has gained 13% has led to an overbought status on Great West Life (TSX:GW). There has been no company specific catalyst to its recent rise and as such is most likely driven by a shift to safety and income stocks amidst after a period of volatility. It is also explains the sudden buying activity on the several REIT’s and utility companies that made the list.

MOST OVERSOLD

  • CCL Industries (TSX:CCL.B): 21.78
  • Blackberry (TSX:BB): 22.29
  • Indigo Books & Music (TSX:IDG): 22.84
  • Cervus Equipment Corp (TSX:CERV): 23.31
  • Nevada Copper Corp (TSX:NCU): 24.03
  • Osisko Gold Royalties (TSX:OR): 24.49
  • Organigram Holdings (TSX:OGI): 25.21
  • Village Farms International (TSX:VFF): 26.46
  • Cronos Group (TSX:CRON): 26.69
  • Kbro Linen (TSX:KBL): 27.27

CCL Industries (TSX:CCL.B) tops the list of the most oversold stocks on the index. It has been a slow and steady decline for the company’s stock as second quarter results from early August disappointed. We covered Blackberry’s (TSX:BB) less-than-impressive quarterly results earlier this week and as such, it is not surprising to see the tech giant under selling pressure.  As always, oil and gas stocks are at depressed price levels, and may have a bit of upside from here.

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Mathieu Litalien


Mathieu is an individual investor and has been investing part-time for the better part of the past 20 years. He is primarily interested in fundamental analysis, focusing on the long-term and his portfolio is composed primarily of dividend-paying equities. Mathieu has a moderate risk profile and also looks for growth and value. His passion for finance and the markets have led him to his MBA and writing for Seeking Alpha, Motley Fool and Stocktrades. Mathieu also focuses primarily on stock research and content production for Stocktrades.ca Premium and the Stocktrades blog.

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