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TSX Market Analysis: Identifying Overbought and Oversold Stocks Amidst Recent Volatility
Finance · Investment Managers · globe_inside_market · 2026-08-24
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A review of the S&P/TSX Composite Index reveals current technical trends, highlighting REITs and utilities as oversold while precious metal miners lead overbought gains.
What Happened
Market Technical Overview: The S&P/TSX Composite Index concluded the week with a 0.3 per cent decline, maintaining a 17.1 per cent gain for 2026. With a Relative Strength Index (RSI) of 63, the benchmark remains in neutral territory, positioned closer to the 70-level sell signal than the 30-level oversold buy signal.
Oversold Market Segments: Real Estate Investment Trusts (REITs) and utility companies dominate the current list of oversold equities. Notable names appearing on this list include Smartcentres REIT, Fortis Inc., Emera Inc., and Hydro One Ltd., reflecting a period of technical weakness for these defensive sectors.
Overbought and Momentum Leaders: Conversely, the overbought category is heavily represented by the precious metals sector, including Agnico Eagle Mines Ltd., Wheaton Precious Metals Corp., and Kinross Gold Corp. Additionally, 14 stocks reached new 52-week highs, led by major energy and transportation firms such as Canadian Natural Resources Ltd. and Canadian Pacific Kansas City Ltd.
Individual Stock Performance: While most of the market showed resilience, Boyd Group Services Inc. stood out as the sole constituent hitting a new 52-week low. Investors are monitoring these technical extremes as the index navigates the balance between ongoing momentum and potential mean reversion.