The S&P/TSX Composite has seen a notable uptick of 0.4% for the trading week wrapping up on Friday, bringing its remarkable 2025 performance to an impressive 8.5%. However, with a Relative Strength Index (RSI) of 67, it’s teetering on the brink of overbought territory, dangerously close to the pivotal sell signal at 70, which might hint at an impending market pullback.

Spotlight on Oversold Gems!

Amid this fluctuation, two intriguing stocks stand out as oversold: Enghouse Systems Ltd. and North West Co Inc., both presenting enticing opportunities with their RSI plunging below the critical 30 mark. Additionally, Descartes Systems Group is skirting the oversold line, reporting an RSI of 30.5.

The Overbought Crowd: Caution Ahead!

On the other hand, the issue of overbought stocks is rampant, with a staggering 33 companies flashing warning signs. Top contenders include Paramount Resources Ltd., Spartan Delta Corp., Dollarama Inc., Gibson Energy Inc., and Oceangold Corp., all of which are raising eyebrows in the investment community.

New Record Highs and Lows!

Moreover, the market is buzzing with action as 21 stocks have shattered their 52-week highs. Topping the list are powerhouse companies like Fairfax Financial Holdings Ltd., Imperial Oil Ltd., Barrick Mining Corp., Nutrien Ltd., and Arc Resources Ltd. Meanwhile, the week also saw Ivanhoe Mines Ltd. and Enghouse Systems Ltd. hitting new lows, revealing the stark contrast in market sentiment.