Canada Stocks Close Higher; Third Consecutive Weekly Gain; Technical's Show TSX is Overbought


Canadian stocks closed higher on Friday up 76 points notching up a fresh 2-year high. Most sectors were higher led by Telecom and Utilities with Info Tech capping gains.

The TSX notched closed higher for the third consecutive week, but the technical's are flashing a warning sign. The RSI (relative strength index) which is an oscillator that measures overbought and oversold levels, is printing at 79, which is well above the overbought trigger level of 70. Additionally, the TSX is 6% above the 200-day moving average which is the farthest the TSX index has been above its long term moving average since April of 2011.

Athabasca Oil Corporation (ATH.TO)was the most active share with no fresh specific stock news driving volume. The stock closed up 1.4% with 6.7 million shares changing hands.

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This article appears in: Investing , Commodities

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