In a week marked by moderate gains, the S&P/TSX Composite Index witnessed a slight uptick of 0.21% for the trading week ending on Friday. As a result, the index has soared an impressive 26.0% so far in 2024. However, with the Relative Strength Index (RSI) currently sitting at 76, it has moved into overbought territory, surpassing the critical 70 threshold—an indicator that could foreshadow a potential correction in the near future.

Investors should take note that there are six stocks on the TSX showing promising signs of being oversold, according to their RSI readings, which are below the oversold 30 buy signal. Leading the pack is Cargojet Inc., followed closely by Toromont Industries Ltd., H&R REIT, Toronto-Dominion Bank, Boralex Inc., and Baytex Energy Corp. These stocks may present unique opportunities for value hunters in the current market climate.

Furthermore, the exchange is experiencing a surge of momentum with 22 index stocks reaching new 52-week highs. Among these high-fliers, the five largest stocks making new highs include Shopify Inc., Thomson Reuters Inc., Bank of Montreal, Canadian Imperial Bank of Commerce, and Fairfax Financial Holdings Ltd. These companies are setting the pace for growth and could be worth considering for your investment portfolio.

Conversely, it's essential to be aware of the four stocks hitting new lows this week: TD Bank, Toromont Industries, Northland Power Inc., and Baytex Energy Corp. Investors might want to exercise caution with these stocks as they reflect underlying weaknesses in their respective sectors.

In conclusion, while the TSX has performed admirably in 2024 thus far, the current market signals suggest that investors should remain vigilant. With a mix of oversold and overbought stocks, the dynamic landscape offers both opportunities and risks. Are you ready to seize the moment and make strategic moves in the stock market? Stay informed and invest wisely!