The S&P/TSX Composite Index has recouped its early 2020 losses in the first months of 2021.
Investors have feasted on a scorching bull market since the pandemic spurred central banks into radical action. Today, I want to look at three TSX stocks that just sent off a sell signal. Should investors heed that warning?
George Weston (TSX:WN)(NYSE:WNS) is a food retail giant in Canada. However, it signaled a shift away from the grocery space in late March. Weston announced that it would sell its bakery business to focus on its retail and real estate operations. Shares of Weston have surged 18% month-over-month as of close on March 30. The TSX stock last had a Relative Strength Index (RSI) of 78. This puts Weston well into technically overbought territory.
Fortis (TSX:FTS)(NYSE:FTS) is one of the most dependable utility stocks on the TSX. Its shares have increased 4.6% in 2021 so far. However, the stock has only climbed marginally year over year. Fortis recently hiked its quarterly dividend for the 47th consecutive year.
Shares of this top dividend stock last had an RSI of 70. That puts Fortis just barely into overbought levels. Fortis has rebounded nicely from its post-earnings dip. I’m still high on this overbought stock in the early spring.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is the second-largest Canadian bank. The stock has climbed 14% so far this year. Its shares have surged 38% from the same period in 2019.
Bank stocks have rebounded nicely from the March 2020 market pullback. TD Bank has hovered around overbought territory since the beginning of December 2020. It last had an RSI of 67, putting it just outside of overbought territory.
